As part of the design phase for a digital pound, the Bank of England (BoE) has said it is conducting experiments and proofs of concept (PoC) in collaboration with private-sector innovators and a range of stakeholders. These aim to assess the technical feasibility, technology and policy implications of potential digital pound design features, including the potential use of exiting point-of-sale (POS) hardware. No decision has been taken on whether or not to build a digital pound.

Law360, London: The Bank of England's (BoE) regulatory arm told a House of Lords Committee on 8 January 2025 that it will reduce bank reporting requirements and enable insurers to make certain investments before regulatory approval, amid other easing of its rules in line with government growth priorities.

Law360: The Bank of England (BoE) said on 27 March 2024 the proportion of banks, insurers and other firms that find artificial intelligence (AI) one of the greatest risks to the finance system has doubled in six months.

Law360: The governor of the Bank of England (BoE) has said he is a 'strong advocate' for plans by the Labour government to direct pension scheme capital toward British business, despite having warned against proposals that would mandate specific investments.

Law360: The governor of the Bank of England (BoE) has said that he disagrees with the idea of requiring pension funds to invest in UK assets, in an intervention that experts say could have a knock-on effect for proposed legislation for the sector.

The Bank of England (BoE) reports on Randy Kroszner’s address at the Futures Industry Association (FIA) International Derivative Expo, where he examined the critical role of central counterparties (CCPs) in maintaining financial stability amid emerging global risks. Drawing on his extensive experience as an academic, regulator, and policymaker, Kroszner outlined how recent global shocks — including geopolitical tensions, trade-policy disruptions, sovereign debt vulnerabilities, and cyber threats — have heightened market uncertainty and underscored the necessity for a system-wide risk management approach. He explained that while CCPs serve as vital shock absorbers, the concentration of clearing activities among a few dominant players could amplify systemic risks during market stress. Furthermore, Kroszner addressed regulatory challenges by emphasising the need for enhanced data collection, improved market surveillance, and greater international coordination to bridge existing data gaps. His speech also spotlighted ongoing reforms, notably the BoE’s macro-prudential regulatory framework and the forthcoming fundamental rules for financial market infrastructure, which together underscore a commitment to harmonising standards and reinforcing financial stability in an interconnected global landscape.

The Bank of England (BoE) has introduced a data-driven approach to monitor hidden leverage in the non-bank financial system, using transaction-level data from the UK EMIR Trade Repository (EMIR TR). This initiative aims to address systemic risks posed by opaque financial exposures, such as those that contributed to the collapse of Archegos Capital in 2021. By analysing derivative transactions involving UK-domiciled counterparties, BoE can identify large and rapidly growing positions that may signal emerging vulnerabilities in financial markets.

Law360, London: Bank of London has said it is under investigation by the Bank of England's (BoE) regulatory arm, with the risk that an unfavourable outcome could affect whether it ultimately stays in business.

The Bank of England (BoE) has published its annual report on supervision of financial market infrastructures (FMIs), detailing its work over the past year, including implementing an improved regulatory regime under the Financial Services and Markets Act 2023 (FSMA 2023) and facilitating innovation through stablecoins and the Digital Securities Sandbox.

The Bank of England (BoE) has released its consultation paper (CP) concerning its proposal to revoke the retained EU law technical standard 2019/348 on Simplified Obligations (SO UKTS) which is of relevance to Prudential Regulatory Authority (PRA) authorised UK banks, building societies, PRA-designated investment firms, their qualifying UK parent undertakings, and their affiliates. Responses are sought by 2 February 2025.

The Bank of England (BoE) has published a policy statement on expanding mandatory ISO 20022 enhanced data requirements for CHAPS payments from November 2027. The expansion follows feedback from its 2024 consultation and aims to improve payment prioritisation, resilience, fraud prevention, and global harmonisation.

The Bank of England (BoE) has launched the 2025 Bank Capital Stress Test to assess the resilience of the UK banking system against severe economic shocks. The test involves the seven largest and most systemic UK banks and building societies, representing 75% of UK real economy lending. The stress scenario encompasses deep recessions in the UK and global economies, significant asset price declines, higher global interest rates, and elevated misconduct costs. It is designed as a 'tail risk' scenario to evaluate the banks' ability to withstand adverse conditions without amplifying shocks. The test aims to ensure that the participating banks can continue serving UK households and businesses during times of stress. The results, to be published in Q4 2025, will inform the setting of capital buffers for the UK banking system and individual banks, as well as provide insights into risks in the banking sector.