Financial Stability Review
Risk Assessment Articles
1998
2005 2004 2003 2002 2001 2000 1999 1998 1997
Equity
Prices and Financial Stability
(99k)
(Issue 5, Autumn 1998)
In July 1998 equity prices in the UK reached a new high. Over the next three months prices both fluctuated sharply and fell by some 25%, partly in response to a slowdown in British economic activity and economic turmoil in emerging markets and partly as a natural reaction to an irrational equity bubble. This article discusses why the Bank should be concerned with fluctuations in equity prices and looks at the evidence of overpricing.
Financial
Interlinkages and Systemic Risk
(176k)
(Issue 4, Spring 1998)
The financial exposures among banks and other financial institutions in the UK are an important part of any consideration of systemic risk. Some key risks in high-value payments arrangements have been reduced in recent years but foreign exchange settlement risk still looms large. Exposures in the interbank and derivatives markets are also important. Most exposures are among an "inner ring" of big UK banks, internationally active banks and securities houses.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
