Systemic Risk Survey, by BofE – depressing

The Bank of England has just released results of their biannual Systemic Risk Survey, conducted only last month, from a sample of 68 buy and sell side market participants.

The biggest risks to the UK Financial System cited by most respondents were:

Sovereign Risk (76%)
Risk of economic downturn (76%)
Funding Risk (57%)
Risks around regulation/taxes (38%)
Risk of financial institution failure/distress (26%)

As you can see from the chart, it’s depressing.

No wonder when asked last week about the risks of another banking crisis, Mervyn King (Governor of the Bank of England) said:

…“Who knows what’s going to happen tomorrow, let alone next month?”

full series of survey results here

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: