Regulation of the financial system in the UK, e.g. the role of the Bank of England, the Prudential Regulation Authority (PRA), the Financial Policy Committee (FPC) and the Financial Conduct Authority (FCA)
Several official bodies oversee the UK's banks and financial markets. Each body targets a different type of risk to keep the system stable and fair.
Real World
Following the collapse of Silicon Valley Bank's UK arm in March 2023, the PRA coordinated an emergency sale to HSBC overnight, demonstrating how rapid regulatory intervention can contain contagion.
Exam Focus
In 'evaluate' questions, distinguish each regulator's role clearly — examiners penalise vague answers that conflate the PRA and FCA.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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