The Financial Policy Committee of the Bank of England said it is ready to take any action needed to support UK financial stability.
According to BoE’s Financial Policy Summary and Record, released Tuesday, the backdrop to the Committee’s March meetings has been dominated by the outbreak and spread of Covid-19.
The FPC assessed that major UK banks are well able to withstand severe market and economic disruption. Also, household vulnerability is considerably lower than before the financial crisis.
At the March meeting, the FPC together with the Prudential Regulation Committee decided to cancel its 2020 stress test of major banks. This will help lenders focus on meeting the needs of UK households and businesses via the continuing provision of credit, the bank said.