BoE CFO Kyei outlines strategy for future resilience
Afua Kyei, Chief Financial Officer of the Bank of England, outlined the central bank's strategy for modernizing its financial framework and operations. Speaking at Guildhall, Kyei detailed four key pillars to build strength and flexibility for the future.
Balancing policy and market demand
Afua Kyei, Chief Financial Officer of the Bank of England, detailed the central bank's strategy for modernizing its financial framework, built on four key pillars.
She highlighted the Bank's balance sheet, which peaked at £1.1 trillion during the pandemic and now stands at £800 billion.
Unlike commercial banks, its size is driven by policy objectives, ensuring financial stability and supporting interventions like Quantitative Easing.
Kyei explained that the future size will be largely determined by repo-led liquidity demand from market participants, rather than the Bank's supply.
The Bank's balance sheet is underpinned by a strong Capital and Risk Management Framework with His Majesty's Treasury, its 100% shareholder, featuring the Bank's own capital and an indemnity for the Asset Purchase Facility.
Innovation and funding for future operations
Kyei detailed the Bank's multi-year strategic investment plan to upgrade systems and drive innovation.
A key project is the Real Time Gross Settlement (RTGS) system upgrade, a critical national infrastructure settling over £790 billion daily.
The National Audit Office praised the RTGS Renewal programme, stating it 'demonstrates good practice and innovation.'
To fund these investments, the Bank has rebalanced its cost base and introduced the Bank of England Levy, ensuring full cost recovery.
Emerging technologies like Artificial Intelligence and Distributed Ledger Technology are prioritized for their transformative potential in productivity and policymaking, alongside a focus on operational resilience.
People are the Bank's true strength
Kyei firmly believes that the Bank's unique strength stems from its talented people and a supportive culture, rather than solely from technological advancements.
Her emphasis on fostering diversity, equity, and inclusion, alongside strong leadership, suggests a holistic approach to institutional resilience that prioritizes human capital.
This perspective implies that while financial frameworks and technology are foundational, the Bank's long-term success ultimately depends on its ability to attract, retain, and empower a diverse workforce.
Source: Getting fit for the future − speech by Afua Kyei
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