Quarterly Bulletin - 2020 Q2

Our Quarterly Bulletin explores topics on monetary and financial stability and includes regular commentary on market developments and UK monetary policy operations.
Published on 26 June 2020

Topical article

'Don’t put all your eggs in one basket’: protecting banks from the failure of individual counterparties

Regulators across the world recognise that monitoring banks’ large exposures is necessary for sound prudential regulation and effective supervision of banks and banking systems. Both internationally and in the UK, a large exposure (LE) framework is in place to limit the maximum loss a bank could face in the event of sudden counterparty failure. This article looks at the current LE regime in the UK and how it has evolved over time to become a key element of financial services regulation.

'Don’t put all your eggs in one basket’: protecting banks from the failure of individual counterparties

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