The Bank of England (BoE) is planning to implement an IT system before the end of 2012 to assess the risk of firms operating in the financial sector.

The announcement comes amid the LIBOR-fixing scandal by banks such as Barclays that is currently rocking the financial services sector, which has put the BoE's risk assessment systems into question.

It is estimated that the system will cost up to £2.5 million and allow the BoE to record firms' risk scores, whilst also providing the capability to analyse and report on risk assessments.

The BoE also wants the capability to analyse firms by time series, peer group or sector, and be able to drill-down and aggregate within firm structures and generate advanced visualisations and management reports.

Vendors must also be able to integrate the system with the BoE's document management system, FileSite, in order to refer back to stored documents.

Development and implementation is planned to be split over two phases, with the first to commence by the end of 2012. The second phase will follow after the BoE has gained some experience operating the system, which may influence how the second phase of development carries out.

The second phase of implementation will focus on adding functionality and developing the interfaces to the analytical, contact and case management tools.

Responses to the Bank's tender will be reviewed by a panel that will include individuals both from the BoE and the Financial Services Authority (FSA).

The contract will initially run for a three-year period, with the option to extend for two further years.

It was revealed last year that the BoE had signed a contract with EMC to expand data storage with new SAN devices.