The Artificial Intelligence Consortium (AIC) aims to provide a platform for public-private engagement to further dialogue on the capabilities, development, deployment, use, and potential risks of artificial intelligence (AI) in UK financial services.
The Bank of England (the “Bank”) has fined Vocalink Limited (“Vocalink”) £11,900,000 in respect of a compliance failure under section 196 of the Banking Act 2009 (the “Act”). This is the first time the Bank has fined a financial market infrastructure firm.
Our Financial Policy Committee (FPC) meets to identify risks to financial stability and agree policy actions aimed at safeguarding the resilience of the UK financial system.
The PRA, FCA and the Society of Lloyd’s have agreed changes to streamline the process of regulatory approval for Lloyd’s managing agents, intended to reduce the timeframe for authorisation.
The Bank of England is asking the public to give their views on what theme they would like to see represented in the design of the next series of banknotes – through a consultation launching today (2 July 2025).
Statistical Notices update the definitions and guidance contained in the Banking Statistics Yellow Folder
In December 2023 the Bank’s Court of Directors commissioned its Independent Evaluation Office (IEO) to conduct an evaluation of whether the Bank uses horizon scanning effectively to inform decision-making and support its mission.
Our paper uses a general equilibrium framework to examine the effects of temperature on firm-level demand, productivity and input allocative efficiency. Using data from Italian firms and detailed climate data, it uncovers a sizeable negative effect of extreme temperatures on firm-level productivity. Based on these estimates, the model generates aggregate productivity losses from local temperature fluctuations that are higher than previously thought, ranging from 0.60% to 6.82% depending on the scenario and the extent of adaptation.
This article studies the supply of private safe assets by banks and its implications for financial stability. Banks originate loans and improve loan quality through hidden screening efforts. They can then create safe assets by issuing debt backed by the safe payoffs, from both loans they have originated and a diversified pool of loans from other banks. The interaction between banks’ screening efforts and diversification decisions determines the volume of safe assets they supply.
The recent surge in inflation has led to a significant increase in the frequency of price changes, making prices more flexible. Conventional models assume a constant price change frequency, but in state-dependent models the frequency varies with economic conditions. Price flexibility has an impact on the effectiveness of monetary policy. In high inflation periods, frequent price changes make monetary policy more effective in reducing inflation with less impact on economic activity. Therefore, monetary policy should be more aggressive during such periods to stabilise prices efficiently.
