Banks, borrowing and saving

Learn about how banks operate and how we work to keep them safe

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What do banks do?

What sets high street banks apart from other businesses is the way they work with money.

What do I need to know about debt?

Learn more about debt and see how yours compares to the rest of the UK.

Can you stop a bank from going bust?

If banks stopped working, the economy would grind to a halt. It’s our job to make sure that banks continue to work in a safe and sound way.

Build your knowledge on banks

Why is competition important in banking?

We aim to keep banks safe, but of a bit of healthy competition can be a good thing for consumers.

What risks do banks take?

The three largest risks banks take are credit risk, market risk and operational risk.

Why do we regulate banks?

We want to keep the financial system stable and individual banks safe.

What is capital?

Capital is another name for the financial resources a bank has that act as a cushion or shock-absorber against unexpected losses.

What happened to Silicon Valley Bank UK?

It’s our job to make sure a failing UK bank doesn’t cause widespread harm to the economy or cost UK taxpayers money.

Why are retail banks being ‘ring-fenced’ and how will this affect me?

Large UK banks will legally separate or ‘ring-fence’ some of their banking services from other parts of the bank.

What does insurance cover?

Insurance provides protection against financial loss for people and companies.

What is Islamic finance?

Money management and business dealings that are compatible with Islam.

What is the Prudential Regulation Authority (PRA)?

The PRA supervises around 1,500 financial institutions including banks and insurance companies.

Build your knowledge on the Bank of England

What does the Bank of England do?

The Bank of England is unlike banks you see on the high street or use for online banking. Instead, it is the central Bank of the UK.

Who owns the Bank of England?

Some people think the Bank of England is owned by private families, the Royal Family, or even run as a private corporation… but this is untrue. So who are we owned by?

Who pays for the Bank of England?

Although we’re a public body, each year we give around £350 million back to the public through HM Treasury.

How is the Bank of England independent of the Government?

We have specific legal responsibilities for setting policy – for interest rates, for financial stability, and for the regulation of banks and insurance companies.

How is the Bank of England responding to climate change?

We help the UK to manage the risks that climate change brings and we support its move to net-zero.

How much gold is kept in the Bank of England?

Our gold vaults hold around 400,000 bars of gold, worth over £200 billion.

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