Source · Select Committees · Treasury Committee
Recommendation 118
118
Deferred
Consider physical cash value in emergency preparedness and severe payment system outages
Conclusion
In discharging its responsibility for national security and resilience, HM Treasury must consider the value of physical cash in emergency preparedness. This may include recommending that cash is held by individuals in case of emergency, and considering what role cash distribution might play in a severe payment systems outage. (Recommendation)
Government response summary AI-generated
The government's response focuses on monitoring international approaches to cash access, usage, and policies to inform future decisions, rather than directly addressing how HM Treasury will consider the value of physical cash in emergency preparedness, individual cash holdings, or cash distribution during system outages.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Deferred
HM Government · verbatim extract
Deferred
Operational resilience is a vital part of protecting the UK’s financial system. That is why we work in close cooperation with the financial regulators, National Cyber Security Centre, industry and our international partners to improve our resilience against threats of all origins, reduce vulnerabilities and ensure the financial services sector is as secure and resilient as possible. To ensure financial institutions are resilient to operational risks, the sector’s regulators (Financial Conduct Authority and Prudential Regulation Authority) have issued supervisory statements requiring them to identify important business services, set impact tolerances for disruption and put in place safeguards to ensure those systems remain within tolerance in the event of severe but plausible scenarios. The Bank of England also regulates and supervises systemically important payment systems for financial stability purposes. This includes providers, that operate the UK’s main ATM and retail payment networks. The Bank of England works with the entities it regulates to promote collective resilience planning and preparedness in considering a range of substitutability options for payment services.
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