The (interim) Financial Policy Committee has published a statement following its policy meeting on March 16: see
here (
pdf). Under the new regulatory framework, the FPC will have the power of direction over the
Financial Conduct Authority and
Prudential Regulation Authority. In this regard, the FPC identified in its statement the following macro prudential tools over which its power of direction should extend: the countercyclical capital buffer; sectoral capital requirements and the leverage ratio. The FPC also noted that powers of direction over loan to value and loan to income restrictions could be beneficial for financial stability but did not recommend that these should be available without further reflection and analysis.
Notes:
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