This Bank of England Statement of Policy (SoP) sets out the Bank’s approach for conducting cost benefit analysis (CBA), when making rules for CCPs and CSDs.
CBA is an integral part of good policymaking. This SoP explains how the Bank estimates costs and benefits as part of its policymaking process, and the role of regulation of CCPs and CSDs in ensuring the stability of the UK’s financial system. Supported by the CBA Panel, CBA enhances the transparency of our policymaking and our accountability and helps us make better policies.
This SoP incorporates feedback from the CBA Panel. We now welcome feedback from all members of the public. The Bank plans a review of this Statement of Policy in 2025 Q4, which will take into account feedback from the CBA Panel, other stakeholders and any lessons learnt from future CBAs. Depending on the outcome of the review, the Bank may publish a revised Statement of Policy in 2026.
The PRA has also published the PRA’s approach to conducting CBA which sets out how the PRA will conduct CBA in relation to rules for PRA regulated firms.