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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    • Reports and associated evidence – Reports of Committee inquires. This category may also include Special Reports where they are used by a Committee to bring matters relating to conduct of its business to the notice of the House.
    • Responses to Reports - Responses may be published as a Special Report, or as a Command Paper. They may also be appended to a Report should the Committee have substantial comments on the Response, in which case they can be found listed under Reports. 
    • Other oral and written evidence - Evidence taken by the Committee that has yet to or did not result in the publication of a Report. This includes transcripts of recent meetings.
    • Estimate Memoranda - An Estimate memorandum is an explanatory note that accompanies a government department’s estimate (a means by which a department seeks authority from Parliament for its spending plans).
    • Correspondence - Correspondence sent from or received by the Committee or its Chair.

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