ABSTRACT

This Chapter is concerned with the role of the Bank of England in the regulatory process now that its supervisory powers have been transferred to the Financial Services Authority under the provisions of the Bank of England Act 1998. The role of the U.K.’s central bank has undergone a fundamental change, but while it is no longer responsible for the supervision of individual banks it still has a significant and statutory role to play in regulating the health of the financial system generally.1