A stable financial system inspires the confidence of businesses, investors and consumers, and underpins vital economic activity. This is why the Government has committed to introducing a new regulatory system in the UK, which will be better equipped to identify and deal with potential risks to the system in the future.
In recent years, the financial stability agenda has been dominated by the consequences of the global financial crisis that began in summer 2007. The financial crisis required various interventions from governments and finance ministries across the world to help bolster the financial system, increase lending and stimulate the world economy.
In the UK, the crisis involved a run on a high-street bank as well as the part-nationalisation of two of the largest banks in the world. During this time:
Current financial stability policy
The Treasury continues its work to improve the long-term health and structure of the financial system. Find out more about current policy to monitor financial stability as well as the UK’s exposure to the banks.
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