United Kingdom: Financial Sector Assessment Program-Banking Supervision and Issues in Financial Stability

IMF Staff Country Reports, April 8, 2022

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The Financial Sector Assessment Program (FSAP) carried out a targeted evaluation of issues relating to the effectiveness of banking regulation and supervision in the United Kingdom.
The 2021 FSAP leverages on the 2016 FSAP which concluded that the United Kingdom (U.K.) had a high degree of compliance with the 2012 Basel Core Principles (BCPs) with some shortcomings.
The 2021 FSAP reviewed the progress in addressing those shortcomings and examined the main supervisory and regulatory developments since the last FSAP.
The FSAP evaluation also focuses on:
- steps taken to minimize disruptions in the U.K. banking system at the end of the Brexit transition period, and
- the regulatory and supervisory measures introduced to contain spillovers from the ongoing COVID-19 pandemic on the U.K. banking system.

Targeted evaluation of the effectiveness of banking regulation and supervision in the United Kingdom.
Review of progress since the 2016 FSAP, which found a high degree of compliance with the 2012 Basel Core Principles (BCPs) with some shortcomings.
Examination of main supervisory and regulatory developments since the 2016 FSAP.
Specific focus on:
- minimizing disruptions at the end of the Brexit transition period, and
- measures to contain spillovers from the COVID-19 pandemic on the U.K. banking system.

Subject: Credit risk, Financial regulation and supervision, Financial sector policy and analysis, Financial services, International organization, Monetary policy, Operational risk, Stress testing
Keywords: Credit risk, Global, Operational risk, PRA buffer, PRA rule, Stress testing, U.K. authorities, U.K. banking market, U.K. banking sector, U.K. deposit takers supervision, U.K. economy