COMMONS

Macroprudential tools

Inquiry status: Oral evidence taking in progress

The Financial Services Bill proposes giving the FPC powers of direction over the Financial Conduct Authority and the Prudential Regulation Authority and the power to make recommendations to a wide range of parties.

Taken together, these powers of direction and recommendation constitute the FPC’s ‘macroprudential tools’.

The interim FPC of the Bank of England recently published its advice to the Treasury about the powers of direction it should have. These were:

  • the countercyclical capital buffer;
  • sectoral capital requirements;
  • a leverage ratio.

Further details can be found in the terms of reference below for the Committee's inquiry.

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Select Committee Inquiries

Select Committees carry out inquiries on areas ranging from the work of government departments to economic affairs. The results of these inquiries are public and many require a response from the Government.

Stages of an inquiry

Most, but not all, Select Committee inquiries are conducted as follows:

  • Written evidence called for
  • Oral evidence sessions held
  • Report published
  • Response published

Not all inquiries result in a Report