Commons Sense

House of Commons · Written Ministerial Statement

The Bank of England and HM Treasury financial relationship

13 February 2025 · Treasury

Proposed by Emma Reynolds Lab Wycombe

Economy

Summarised by AI from the official record, so it can contain mistakes.

View on Parliament.uk

At a glance

Key points

  • The Bank of England and HM Treasury concluded a 5-yearly review of the Bank's capital framework parameters.
  • HM Treasury and the Bank of England updated the Memorandum of Understanding to reflect the new arrangements.
  • The updated Memorandum of Understanding can be accessed on the GOV.UK website.

Issue summary

The statement discusses the conclusion of a 5-yearly review by the Bank of England and HM Treasury regarding the Bank's capital framework parameters.

Action requested

HM Treasury and the Bank of England have updated the Memorandum of Understanding to reflect these arrangements, which will be reviewed during the Bank’s balance sheet transition to a new steady state over the coming years. The MoU can be accessed at https://www.gov.uk/government/publications/memorandum-of-understanding-between-hm-treasury-and-the-bank-of-england-2025.

Key facts

  • Parameters of the capital framework include £0.5bn for the floor, £3.5bn for the target and £5.5bn for the ceiling.
  • The review concluded on 21 June 2018.
  • Further details on the transition can be found at the provided link.
▸ Assessment & feedback
Summary accuracy