Finance
Bank of England working to protect against non-bank failure risk, Ramsden says
Published by Global Banking and Finance Review
Posted on January 14, 2026
Bank of England Enhances Safeguards Against Non-Bank Failures
Ensuring Financial System Stability
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.
Regulatory Considerations for Stablecoins
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.
Adapting to Market Changes
"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)
Frequently Asked Questions about Bank of England working to protect against non-bank failure risk, Ramsden says
1What is a central bank?
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.
2What are stablecoins?
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.
3What is financial stability?
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.
4What is market-based finance?
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.
5What is a regulatory framework?
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.
