## United Kingdom: Financial Sector Assessment Program-Select Issues in Systemic Risk Oversight and Macroprudential Policy

_IMF Staff Country Reports, April 8, 2022_

## Source details

**Canonical URL:** [United Kingdom: Financial Sector Assessment Program-Select Issues in Systemic Risk Oversight and Macroprudential Policy](https://www.imf.org/en/publications/cr/issues/2022/04/07/united-kingdom-financial-sector-assessment-program-select-issues-in-systemic-risk-oversight-516270)

## Other formats

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## Bibliographic details
- Published: April 8, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400206627.002

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### Summary
- The United Kingdom’s macroprudential policy framework has proven its effectiveness.
- After the Global Financial Crisis (GFC) of 2007–09, the United Kingdom:
  - assigned the Bank of England (BOE) a clear financial stability mandate;
  - created a new Financial Policy Committee (FPC) to set macroprudential policy;
  - shifted to a “twin peaks” model of financial oversight.
- The 2016 Financial Sector Assessment Program (FSAP) concluded that the new framework appeared appropriate for effectively conducting macroprudential policy.
- The 2021 FSAP provides an opportunity to review the framework’s performance in building systemic resilience through the financial cycle, including market volatility resulting from the Brexit vote and the COVID-19 pandemic.

### Major findings and analytical focus
- Effectiveness: The framework is described as having “proven its effectiveness.”
- Institutional changes since the GFC of 2007–09 are highlighted as core to resilience:
  - BOE’s financial stability mandate;
  - establishment of the FPC;
  - adoption of the “twin peaks” oversight model.
- Evaluation scope of 2021 FSAP:
  - Review of performance across the financial cycle;
  - Assessment of resilience to shocks including Brexit-related market volatility and the COVID-19 pandemic.

### Topics, keywords, and thematic coverage
- Subject areas:
  - Countercyclical capital buffers
  - Financial regulation and supervision
  - Financial sector policy and analysis
  - Financial sector risk
  - Financial sector stability
  - International organization
  - Monetary policy
  - Stress testing
  - Systemic risk
- Keywords:
  - affordability stress test
  - Countercyclical capital buffers
  - Financial sector risk
  - Financial sector stability
  - FPC member
  - FPC mortgage market Recommendations
  - Global
  - housing price development
  - mortgage market
  - policy action
  - policy measure
  - Stress testing
  - Systemic risk

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## Content in this bundle

- **1gbrea2022005**
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  - [1gbrea2022005 (PDF)](/-/media/files/publications/cr/2022/english/1gbrea2022005.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2022/04/07/united-kingdom-financial-sector-assessment-program-select-issues-in-systemic-risk-oversight-516270_