Response from the Bank of England to the Committee’s 3rd Report of Session 2024–26, ‘Private markets: Unknown unknowns’

This is the government's response, published 6 March 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Bank of England and PRA welcome the Committee's report, agree with several of its conclusions on private markets monitoring and data, and describe a private markets system-wide exploratory scenario (PM SWES) with a final report due in early 2027.

• On monitoring, the Bank and PRA "agree that the rapid expansion of global private markets presents both opportunities and risks for the UK" and say they "will continue to monitor" securitisation markets, including significant risk transfers and collateralised loan obligations, "carefully as they evolve".
• On the PM SWES, the Bank "anticipate[s] having largely completed firm engagement and analysis for the exercise in 2026, with a final report to be published in early 2027", and expects to publish key findings over 2026, in line with milestones such as Round 1 results.
• On data, the Governor "agree[s]" that appropriate data, proportionate to the risks, is essential, while saying the Bank is "always mindful" of balancing data gaps against the cost of regulation, including the Government's 25% administrative cost reduction target.
• On SME lending, the PRA describes its Small Domestic Deposit Taker regime (capital regime from 1 January 2027), an enhanced IRB model review process effective for applications from 1 January 2026, and says it is "currently working with HM Treasury to explore" further ring-fencing reform.

Read the government's response ↗ Report an error