HM Treasury has published minutes of a 26 February 2026 meeting between Chancellor Rachel Reeves and the Governor of the Bank of England, held after the December 2025 Financial Stability Report. The minutes show the discussion focused on the Financial Policy Committee’s assessment that risks to UK financial stability increased during 2025 because of elevated global risks and continued macroeconomic uncertainty, while UK households and corporates remained resilient in aggregate and the banking system stayed well placed to support the economy. The discussion covered geopolitical tensions, fragmentation of trade and financial markets, pressures on sovereign debt markets, and stretched valuations in some asset classes, particularly AI-focused technology firms. The minutes also refer to the forthcoming system-wide exploratory scenario on risks linked to the growing private markets ecosystem, and to the Financial Policy Committee’s revised assessment that the appropriate benchmark for system-wide Tier 1 capital requirements is around 13% of risk-weighted assets, one percentage point below the previous benchmark. The note adds that the meeting took place before the US–Israel–Iran conflict began on 28 February 2026.
HM Treasury2026-07-16
HM Treasury publishes minutes of Chancellor and Bank of England financial stability meeting, including 13% Tier 1 capital benchmark
HM Treasury published minutes of the Chancellor’s February 2026 meeting with the Bank of England Governor on the December 2025 Financial Stability Report. The minutes show that financial stability risks were judged to have risen during 2025, although households, corporates and banks remained resilient in aggregate. They also note discussion of the forthcoming private markets stress exercise and a revised 13% benchmark for system-wide Tier 1 capital requirements.