Finance
Bank of England working to protect against non-bank failure risk, Ramsden says
Published by Global Banking & Finance Review®
Posted on January 14, 2026
1 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 14, 2026
1 min readLast updated: January 19, 2026
The Bank of England is enhancing measures to protect the financial system from non-bank failures, focusing on stablecoins and adapting to market changes.
LONDON, Jan 14 (Reuters) - The Bank of England is making progress towards ensuring that the financial system is safe in the event of a collapse of an institution outside the traditional banking sector, Deputy Governor Dave Ramsden said on Wednesday.
The British central bank is considering what failure arrangements are needed for important stablecoins and it still has to do more to ensure that firms and the BoE are ready to wind up a central counterparty safely, Ramsden said.
"Looking ahead, it's important our resolution regime responds to changes in the financial system, including the growth of market-based finance and structural developments such as the introduction of new financial products," he said in the text of a speech he was due to give at King's College London.
(Writing by William SchombergEditing by David Milliken)
A central bank is a financial institution that manages a country's currency, money supply, and interest rates. It oversees the banking system and implements monetary policy to ensure economic stability.
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging them to a reserve of assets, such as fiat currencies or commodities, reducing volatility compared to other cryptocurrencies.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to manage risks and absorb shocks, ensuring confidence in the economy.
Market-based finance refers to financial activities that occur outside traditional banking systems, including securities markets and investment funds, allowing for greater flexibility and innovation in financing.
A regulatory framework consists of laws, regulations, and guidelines that govern financial institutions and markets, ensuring compliance, stability, and protection for consumers and the economy.
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