Meeting minutes 鈥� August 2021
Updated 3 May 2024
漏 Crown copyright 2024
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit or write to the Information Policy Team, 皇冠体育app National Archives, Kew, London TW9 4DU, or email: [email protected].
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at /government/publications/record-of-financial-stability-report-meeting-december-2020/meeting-minutes-august-2021
Record of the meeting between the Governor of the Bank of England and the Chancellor of the Exchequer to discuss the Financial Stability Report (published on 13 July 2021).
1) On 2 August 2021, the Governor and Chancellor discussed the .
2) 皇冠体育app Chancellor and the Governor discussed the interim results of the 2021 solvency stress test (SST). As set out in the report, the 2021 SST assesses the resilience of the UK banking system to a very severe macroeconomic stress. 皇冠体育app Governor explained that the interim results were encouraging, and supported the Financial Policy Committee鈥檚 (FPC) judgement that banks can lend to households and businesses, even in very challenging scenarios, and the Prudential Regulation Committee鈥檚 (PRC) decision to remove extraordinary guardrails on shareholder distributions that were put in place at the start of the pandemic.
3) 皇冠体育app Chancellor and the Governor also discussed the FPC鈥檚 judgement that UK corporate debt vulnerabilities have increased modestly. 皇冠体育app increase in indebtedness had not been large in aggregate but had been more substantial in some sectors and among small and medium-sized enterprises (SMEs).
4) 皇冠体育app Governor and Chancellor discussed the FPC鈥檚 analysis on market-based finance, and the international work to build up its resilience. 皇冠体育app Governor then summarised the FPC鈥檚 analysis of potential financial stability risks posed by cloud service providers.