Bank of England

The Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA) have announced the second cohort of banks and building societies to benefit from their joint Scale-up Unit. The Scale-up Unit, which was announced last year, is designed to build stronger ties and provide tailored support for fast-growing and innovative financial firms, helping them to grow at pace while remaining sustainable. The second cohort includes: Chetwood Bank, Cynergy Bank, LHV Bank, Cumberland Building Society, Leek Building Society, Market Harborough Building Society, Newcastle Building Society, Principality Building Society and West Brom Building Society. Shoib Ali Khan, Director for UK Deposit Takers Supervision said “The Scale-up Unit is an important part of how we are supporting sustainable growth and innovation in financial services. I’m delighted to welcome our second cohort of banks and building societies, building on our commitment to help growing firms navigate the regulatory challenges that can come with scaling up.” 👉 Find out more about the work of the Unit and how it is supporting scaling firms here: https://lnkd.in/eRerubhz

AI is becoming increasingly embedded across UK financial services. Our latest survey with the Financial Conduct Authority shows rapid growth in generative AI adoption, as well as widespread deployment of AI agents, but with limited autonomy in practice. Firms see opportunities to improve productivity and efficiency, but concerns around cyber risk and third-party dependencies remain front of mind as AI use continues to grow. Read the findings: https://lnkd.in/eKZM-8Aa

If you got to spend an afternoon with the Chief Cashier at the Bank of England what would you ask him? I got the opportunity to speak with him a few weeks ago and I asked him a question I've wondered since...forever! "Why don't we have a £1 note in the UK?" Have a watch to see what Rhys Phillips had to say. Did you know this? Mr MoneyJar

More good news from our Carers Network🏆 Nathanaël Benjamin, our Executive Director for Financial Stability Strategy and Risk, has won Carers UK’s Inspiring Leader Award. During his time as executive sponsor of the Bank’s Carers Network, Nathanaël consistently championed the importance of supporting colleagues with unpaid caring responsibilities and raising awareness of the contribution they make inside and outside the workplace. The Bank was also recently awarded Carer Confident Level 3 (Ambassador) status, and the network won Carers UK’s Exceptional Carers Network Award. Congratulations Nathanaël👏

In this speech, James explains how physical climate shocks can affect inflation and output, and how central banks can assess and respond to them. He considers two connected horizons: the near-term effects of physical climate shocks on monetary policy, and the longer-term role of economic resilience, adaptation and insurance in helping economies absorb future shocks and support price and financial stability. Read the full speech: https://lnkd.in/ecQctK2R

In her first Mansion House speech as Chief Executive Officer of the Prudential Regulation Authority (PRA), Katharine Braddick sets out her vision for the PRA's second decade. She outlines plans for a new five-year strategy centred on four priorities: resilience, growth, innovation and transparency, alongside a series of reforms to strengthen operational resilience, streamline regulation and improve regulatory processes for firms. Read the full speech: https://lnkd.in/e669cHfF

The extent to which the latest energy price shock feeds into more persistent inflation through second-round effects remains a key consideration for policymakers. The presence of slack in the labour market could suggest that wage pressures will remain contained, limiting the scope for second-round effects. But is this likely to be the case? In this speech, Megan challenges this argument, drawing on a wide range of wage indicators to assess recent developments in pay growth and the likely path ahead for wages and domestically-generated inflation. She then turns to broader measures of labour market slack to examine whether current conditions are likely to restrain second-round effects via the wage-setting channel. Read the full speech: https://lnkd.in/e88cdqbv

Inflationary pressures can arrive in many forms. Petrol prices may jump after a disruption to global energy supplies. Haircut prices may rise because wages and domestic demand are increasing. Both contribute to headline inflation, but they do not necessarily require the same monetary policy response. This raises one of the toughest questions in central banking: which inflationary pressures should policymakers respond to, and which should they look through? Read the full Insights article here: https://lnkd.in/eHkKrPqN

A new Chief Cashier and a new signature for our banknotes 💷 Today, Rhys Phillips officially takes up his role as Chief Cashier and Director of Notes at the Bank of England. You may know the Chief Cashier as the person whose signature appears on our banknotes, but there’s much more to the role. He’ll be responsible for ensuring there are enough banknotes in circulation to meet demand, working closely with financial institutions, suppliers and businesses. Rhys takes up the role at an exciting time, as we continue the journey towards our next series of banknotes. He will lead our work to ensure the new banknotes are high quality and secure, including incorporating the latest anti-counterfeiting technology.