Financial Policy Committee
institutionMoney & Finance
A committee was set up inside the Bank of England to spot threats to the whole financial system. When a real threat grew in plain sight, it stayed quiet.
Who they are
The Financial Policy Committee (FPC), created inside the Bank of England in 2013.
What they do
A body whose entire job was to identify threats to financial stability.
How it works
It was created alongside the Prudential Regulation Authority as part of the Bank of England. It was given macro-prudential tools — counter-cyclical buffers, loan-to-value guidance, stress-tests — to tighten or loosen finance. On 21 July 2022, Toby Nangle wrote in the FT that LDI managers claimed their activities posed no systemic risk, and he read the FPC's silence as agreement.
Why it matters
It shows a body built to spot system-wide threats can stay silent while one builds, and that silence can be taken as approval.
The engine's record — word for word
The corpus records: "The Prudential Regulation Authority was created inside the Bank in 2013 6 , along with a Financial Policy Committee whose entire job was to identify threats to financial stability 7 ." Cross-sourced to bankofengland.co.uk, greenhousethinktank.org — documents cited by the corpus and retrieved independently of it.
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