Major UK banks and insurers are strong enough to handle a worst-case disorderly Brexit and continue to serve households and businesses.
The biggest risks of disruption in a worst-case disorderly Brexit to financial services used by UK households and businesses have been addressed.
A trade war would damage the global economy at a difficult time. But UK banks are strong enough to keep lending.
We will test that the UK financial system can handle the risks from climate change and support the transition to a carbon-neutral economy.
The core of the UK financial system, including banks, dealers and insurance companies, is resilient to, and prepared for, the wide range of risks it could face, including a worst-case disorderly Brexit.
The perceived likelihood of a no-deal Brexit has increased since the start of the year.
The FPC is maintaining the UK countercyclical capital buffer rate at 1%.
The risks to the global outlook have increased during the first half of the year.
Payments are currently a focal point for innovation. Consistent with its mandate, the FPC will aim to ensure that systemically important payment systems support financial stability, while allowing competition and innovation in payments to thrive.
Open-ended investment funds globally play an increasing and important role in the provision of finance. The FPC continues to judge that the mismatch between redemption terms and the liquidity of some funds’ assets has the potential to become a systemic issue.
The continued reliance of global financial markets on Libor poses risks to financial stability that can be reduced only through a transition to alternative benchmark rates by end-2021.
There is no justification for firms continuing to increase their exposures to Libor. The pace of market participants’ transition efforts now needs to accelerate and the FPC will monitor progress closely.
In 2019, the Bank will conduct a biennial exploratory exercise to explore the implications of a severe and broad-based liquidity stress affecting major UK banks simultaneously.
Financial Stability Report press conference - 11 July 2019 11:00