British politics is now the biggest risk to financial stability
Reuters
More than half of all respondents to the central bank's systemic risk survey cited UK politics as their chief concern for the stability of the financial system.
The survey took responses from 94 market participants, including hedge funds, banks, building societies and central counterparties.
86% of them cited UK politics as a source of risk to the financial system, compared with 37% for a global recession and 34% for cybercrime.
Here is the chart:
Bank of England
Prime Minister Theresa May's government is tasked with taking the UK out of the European Union in a way that satisfies those who voted to leave without destroying the UK's international trade and finance links.
It won't be easy. Already EU leaders have dismissed the UK's attempts to "have its cake and eat it" in the run up to the start of negotiations.
While participants in the survey thought a collapse would not be imminent, more people thought that a "high-impact event" would occur in the medium term - within three years.
"The perceived probability of a high-impact event in the UK financial system over the short term has fallen," the BOE wrote.
"The perceived probability of such an event over the medium term has risen considerably. 43% (-14 percentage points since the 2016 H1 survey) of respondents now consider the probability of a high-impact event as high or very high over the next twelve months; 63% (+26 percentage points) between one and three years ahead."
Here is that chart:
Bank of England
- I got a $40K raise using this 30-second strategy. It made me realize loud work, not hard work, always wins.
- Qatar Airways' new CEO explains why it's sticking with the Airbus A380 as other airlines retire the costly superjumbo
- Prince Harry and Meghan found out about Kate Middleton's cancer diagnosis on TV like everyone else, report says
- Upcoming cars and two-wheelers launching in India in April 2024
- Ice melt in Antarctica and Greenland is slowing Earth's rotation, affecting timekeeping: Study
- Elections on a plate: Poll panels fix menu & expense ceiling for Samosa, tea, biryani & more
- Regenerative farming, cover crops will help farmers increase yields, reduce stubble burning: IDH CEO
- Sustainable Event Planning