Financial Stability Review
Themes and Issues, Issue 19
16 December 2005
Issue
19 - December 2005 - Themes and Issues (Full Article)
(689k)
Since the June Review, the immediate circumstances for borrowers
and lenders have suggested few reasons for a reassessment of
credit and market risks. The UK financial system remains healthy.
However, the persistence of the ‘search for yield’
across financial markets continues to fuel an increase in highly
leveraged and potentially illiquid financial products. It has
placed pressure on financial intermediaries to ease lending
terms, challenged operational controls within the financial
sector, and may have heightened the vulnerability of the UK
financial system to adverse
developments. The Bank of England’s regular assessment
of the ‘Financial stability conjuncture and outlook’
considers these issues in detail.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
