On 10 September 2024, Sarah Breeden, the Bank of England’s (BoE) Deputy Governor for Financial Stability gave a speech on how the BoE thinks about financial stability and some of the challenges it is considering currently. Points covered by the speech include how:
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The BoE supports financial stability in a range of ways.
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Its approach to financial stability must always have system-wide dynamics in mind, not just the individual entities in the system.
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The best contribution the BoE can make to sustainable economic growth is to ensure that the system provides vital services even as shocks occur.
How the BoE supports financial stability
Ms Breeden explains that the BoE defines financial stability as the financial system providing vital services to households and businesses reliably in all states of the world, even when shocks hit (with shocks including both structural - or longer-lasting - changes like climate events or cyber threats, and cyclical shocks like severe recessions).
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