The financial system makes a vital contribution to the UK economy. It enables households and businesses to make payments, borrow, save and invest, and insure against risks. Financial stability means that the financial system as a whole has sufficient resilience in the face of shocks to ensure the reliable provision of these financial services to households and businesses.
This article explains how the Bank works to protect and enhance financial stability in the UK. Given the cost of financial instability and the complexity of the financial system, this work requires a broad set of policies with input from several different bodies inside and outside the Bank of England.