Manuel Gloria and Chiara Punzo The expansion of non-bank financial institutions (NBFIs) is transforming the financial landscape and introducing fresh challenges for financial stability and oversight at the same time as creating opportunities. Using a dynamic stochastic general equilibrium (DSGE) model, we find that while NBFIs may enhance long-term welfare for households and entrepreneurs in … Continue reading Monetary policy, state-dependent bank capital requirements and the role of non-bank financial intermediaries
Financial Stability
Eduardo Maqui, Nicholas Vause and Márcia Silva-Pereira In recent decades, the corporate bond market has grown from a relatively niche source of finance for UK corporations to a central pillar alongside bank loans. This transition raises an important question: as with bank credit conditions, have supply conditions in the corporate bond market come to significantly … Continue reading Bond financing conditions and economic activity in the UK: aggregate and firm-level evidence
Giovanni Covi and Tihana Škrinjarić The ability of the banking system to absorb shocks and continue providing vital financial services is important because it underpins the smooth functioning of the broader economy. We propose a methodology that serves as a valuable tool for monitoring banking system stability. It quantifies the resilience of the banking system … Continue reading Measuring banking resilience to adverse outcomes
Sarah Munson and Callum Ashworth In recent years, retail investors’ demand for UK government bonds (gilts) has increased, marking a change in the composition of market participants. The growth of retail investors, comprised of individuals managing their own portfolios, has been a global phenomenon (Foxall et al (2025)). But what’s driving this change, and what … Continue reading Retail investors’ participation in the gilt market
As a new year begins and the blog starts afresh in 2026, we wanted to take a moment to reflect on the highlights of the blog in 2025. In case you missed any of our posts the first time round, the five most viewed posts of last year were: We hope you enjoyed the blog … Continue reading Our top five posts of 2025
Bank Underground is about to take a break for the festive season. In keeping with tradition, we are pleased to present the annual Bank Underground Christmas Quiz! This year, it’s been prepared with the kind assistance of the Bank of England’s Archive team. We hope you enjoy testing your knowledge of the Bank’s history, especially … Continue reading The Bank Underground Christmas Quiz 2025
Katherine Blood We have developed a new measure tracking UK commercial real estate (CRE) ownership at property level, mapping the latest investor landscape at end-2025 Q3 and its shift since the pandemic. Our estimates show a diversified, international base: overseas investors hold around one third of UK CRE, while private equity funds own 8% after … Continue reading Who owns the buildings where Britain shops, works – and stores its data?
Tuli Saha and Alexandra Varadi High levels of household indebtedness can amplify negative economic shocks, if highly indebted mortgagors make larger cuts to spending in response to them or are more vulnerable to defaulting on mortgage payments adding to bank losses. These are tail risks which can pose significant financial instability. In this post, we … Continue reading The debt trigger: how household debt can amplify the effect of rising rates
David Rule Digital currencies and stablecoins have increased interest in how new forms of money are adopted. Looking to three episodes from the 1690s to the First World War, this post considers how paper currency replaced coin in Britain, an historical example of adoption of new money. The underlying drivers were not technological changes but … Continue reading War and payment innovation: the adoption of paper currency in Britain
Rhiannon Sowerbutts The Bank of England Agenda for Research (BEAR) sets the key areas for new research at the Bank over the coming years. This post is an example of issues considered under the Financial System Theme which focuses on the shifting landscape and new risks confronting financial policymakers. Institutions matter. And in the world … Continue reading Regulatory independence and financial stability