Financial Policy Committee
Encyclopedia
The Financial Policy Committee
(FPC) is an official committee of the Bank of England
, modelled on the existing Monetary Policy Committee
, that will be responsible for monitoring the economy of the United Kingdom
. Focussing on the macro-economic and financial issues that may threaten long term growth prospects, it is expected to be officially set out in legislation
during 2012. An interim FPC will meet during late 2010, however, and thereafter either every quarter, or twice yearly.
The committee, to be headed by the Governor of the Bank (currently Mervyn King
), will address any risks it identifies by passing on its concerns to a new Prudential Regulation Authority (PRA), which will be obliged to act. Plans for the committee were set out in George Osborne
's first Mansion House speech in June 2010, along with the creation of the PRA and a Consumer Protection and Markets Authority (CPMA). Just as minutes of MPC meetings are published regularly, minutes of FPC meetings are likely to be made available, both "to increase transparency and to help transmit messages to the City". It will be accountable to parliament.
Financial Policy Committee
The Financial Policy Committee is an official committee of the Bank of England, modelled on the existing Monetary Policy Committee, that will be responsible for monitoring the economy of the United Kingdom. Focussing on the macro-economic and financial issues that may threaten long term growth...
(FPC) is an official committee of the Bank of England
Bank of England
The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
, modelled on the existing Monetary Policy Committee
Monetary Policy Committee
The Monetary Policy Committee is a committee of the Bank of England, which meets for two and a half days every month to decide the official interest rate in the United Kingdom . It is also responsible for directing other aspects of the government's monetary policy framework, such as quantitative...
, that will be responsible for monitoring the economy of the United Kingdom
Economy of the United Kingdom
The economy of the United Kingdom is the sixth-largest national economy in the world measured by nominal GDP and seventh-largest measured by purchasing power parity , and the third-largest in Europe measured by nominal GDP and second-largest measured by PPP...
. Focussing on the macro-economic and financial issues that may threaten long term growth prospects, it is expected to be officially set out in legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
during 2012. An interim FPC will meet during late 2010, however, and thereafter either every quarter, or twice yearly.
The committee, to be headed by the Governor of the Bank (currently Mervyn King
Mervyn King (economist)
An ex-officio member of the Bank's interest-rate setting Monetary Policy Committee since its inception in 1997, Sir Mervyn is the only person to have taken part in every one of its monthly meetings to date. His voting style is often seen as "hawkish", a perspective that emphasises the dangers of...
), will address any risks it identifies by passing on its concerns to a new Prudential Regulation Authority (PRA), which will be obliged to act. Plans for the committee were set out in George Osborne
George Osborne
George Gideon Oliver Osborne, MP is a British Conservative politician. He is the Chancellor of the Exchequer of the United Kingdom, a role to which he was appointed in May 2010, and has been the Member of Parliament for Tatton since 2001.Osborne is part of the old Anglo-Irish aristocracy, known in...
's first Mansion House speech in June 2010, along with the creation of the PRA and a Consumer Protection and Markets Authority (CPMA). Just as minutes of MPC meetings are published regularly, minutes of FPC meetings are likely to be made available, both "to increase transparency and to help transmit messages to the City". It will be accountable to parliament.