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The Financial Policy Committee
was established to keep risks
in check across the financial
system as a whole.
If the FPC sees evidence of the
financial system growing too
quickly, it can apply the brakes
to keep credit in check and stop
debt rising unsustainably. Just as
important, the FPC can release the
brakes to support the economy if
credit growth has stalled.
The PRA is a subsidiary of
the Bank of England. It is
responsible for the safety and
soundness of around 1,700
banks, building societies, credit
unions, insurers and major
investment firms.
The PRA focuses on the firms
that pose the most risk to the
operation of the financial system.
The Bank of England’s
responsibilities for regulation
of the infrastructure supporting
the financial system were
extended in 2013.
Financial infrastructure includes
the payment systems that let
money flow around the economy
to support payments for goods
and services and trading in the
markets for shares and bonds.
HIGH ST
BANKS
PENSION
FUNDS
The Financial Conduct Authority
is a separate institution and not
part of the Bank of England. It
acts to prevent market abuse
and ensures that consumers get
a fair deal from financial firms.