jeudi 26 mars 2015
Bank of England Financial Policy Committee statement
Posted on 02:51 by nice news
At its meeting on 24 March 2015, the Bank of England’s Financial Policy Committee (FPC) reviewed its assessment of risks to financial stability. Credit growth in the United Kingdom remains moderate and UK banks continue to build their resilience. Nonetheless, the Committee has identified a number of risks to financial stability and has commissioned work in relation to them.
Global risks
International and geopolitical risks to financial stability in the United Kingdom persist. Despite recent encouraging signs, the risk of low nominal growth in the euro area remains. There are also risks associated with a further slowdown in China and to some emerging economies as the stance of monetary policy begins to diverge globally. There also remain significant risks in relation to Greece and its financing needs, including in the near term.
Any of these risks could trigger abrupt shifts in global risk appetite that in turn might lead to a sudden reappraisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.
The Committee has reflected international and other risks in the scenario it is developing with the PRA Board for the 2015 stress test of the largest UK banks. This scenario is being finalised and will be published on 30 March, alongside the hurdle rates that will be used.
Market liquidity risks
The Committee remains concerned that investment allocations and pricing of some securities may presume that asset sales can be performed in an environment of continuous market liquidity, although liquidity in some markets may have become more fragile. Trading volumes in fixed income markets have fallen relative to market size and recent events in financial markets, including in US Treasury markets in October 20
Global risks
International and geopolitical risks to financial stability in the United Kingdom persist. Despite recent encouraging signs, the risk of low nominal growth in the euro area remains. There are also risks associated with a further slowdown in China and to some emerging economies as the stance of monetary policy begins to diverge globally. There also remain significant risks in relation to Greece and its financing needs, including in the near term.
Any of these risks could trigger abrupt shifts in global risk appetite that in turn might lead to a sudden reappraisal of underlying vulnerabilities in highly indebted economies, or sharp adjustments in financial markets.
The Committee has reflected international and other risks in the scenario it is developing with the PRA Board for the 2015 stress test of the largest UK banks. This scenario is being finalised and will be published on 30 March, alongside the hurdle rates that will be used.
Market liquidity risks
The Committee remains concerned that investment allocations and pricing of some securities may presume that asset sales can be performed in an environment of continuous market liquidity, although liquidity in some markets may have become more fragile. Trading volumes in fixed income markets have fallen relative to market size and recent events in financial markets, including in US Treasury markets in October 20
Bank of England Financial Policy Committee statement
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