Commenting on this assessment, David Clementi, Deputy Governor for Financial Stability, said:
"The risks facing the financial system appear somewhat greater than at the time of the Bank's June Review, given the sharp slowdown in world economic growth and the associated increased pressure on borrowers. But the position is better than immediately after 11 September, which temporarily created additional stresses and uncertainties. In the UK, there are few debt-servicing problems in the current interest-rate environment, although levels of borrowing in the corporate and household sectors could imply some future vulnerability. Importantly, the banking system as a whole - and this is true generally elsewhere, notably in the US - is cushioned against increased international and domestic risks by strong capitalisation and profitability."
Press release