Financial Stability Review
Themes and Issues, Issue 17
13 December 2004
Issue
17 December 2004 - Themes and Issues (Full Article)
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There has been little sign of major credit risks crystallising since the June Review and financial market conditions have also been relatively benign. As the main firms and sectors within the UK financial system, and the internationally active financial firms to which they are exposed, generally remain robust, the threats to financial stability in the short run remain subdued. But the continuing rapid build-up of debt by many borrowers and the aggressive 'search for yield' by some market participants may be building up vulnerabilities for the longer term. The factors contributing to systemic risk are discussed in the Bank of England's regular assessment of the Financial stability conjuncture and outlook.
Key Resources
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Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
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