Who monitors systemic risk in the UK?

The Bank of England is primarily responsible for monitoring systemic risk in the UK. Its role involves overseeing the financial system and ensuring its stability, which includes assessing potential risks that could threaten the financial structure as a whole. The Bank of England conducts regular risk assessments, implements stress testing on major financial institutions, and collaborates with various regulatory bodies to identify vulnerabilities in the system.

This function is crucial for maintaining confidence in the financial markets and safeguarding against crises that could arise from systemic failures. While other entities like the Financial Conduct Authority focus on protecting consumers and ensuring market integrity, and organizations like the European Systemic Risk Board and the International Monetary Fund engage in broader systemic risk analysis, the specific oversight and monitoring of systemic risk in the UK fall squarely within the Bank of England’s mandate.