Minutes of the Meeting of the Court of Directors held on 16 July 2026

The Bank of England’s Court of Directors convened on 16 July 2026, with Governor Andrew Bailey updating members on recent developments, including energy price volatility linked to Middle East tensions and risks highlighted in the Financial Stability Review. Bailey emphasized the Bank’s efforts to ensure banks access AI models for cybersecurity protection while noting the Financial Policy Committee’s proposed capital framework adjustments for banks.

Jonathan Bewes provided an update from the Audit and Risk Committee (ARCo), which reviewed EY’s audit performance, the annual internal audit report, and quarterly risk assessments. ARCo also assessed balance sheet projections, tested key controls, and received updates on the Finance Modernisation Programme ahead of its implementation, as well as a critical business resilience exercise conducted with external authorities.

Diana Noble reported on the Remuneration Committee’s (RemCo) discussions, including progress on the Pay Framework Review, while Chair David Roberts briefed the Court on the Nominations Committee’s (NomCo) focus on succession planning and staff mentoring initiatives. Zoe Hawtin-Rew presented a proposal seeking Court approval for additional investment to address frontier AI challenges in the current financial year, which the Governor described as vital.

Afua Kyei outlined the Bank’s financial progress, confirming it remains on track to meet its cost-saving targets. Governors noted advancements in the Mutually Agreed Resignation scheme exits and emphasized the need to control backfill rates to avoid further cost reductions. Jo Hill discussed business planning, including plans to pilot a continuous delivery model for investment programmes, while Directors agreed on the importance of annual reviews of cost targets and process improvements to enhance efficiency.