BoE warns of risks from non-banks in times of crisis MARTIN ARNOLD AND ORTENCA ALIAJ Settings Translate Article Print Share Listen More work is needed to tackle risks outside the banking sector, according to a Bank of England study which found that a market crisis would be amplified by fire sales of assets by pension funds, hedge funds and other investors. The BoE said a sharp rise in sovereign and corporate bond yields caused by “a sudden crystallisation of geopolitical tensions” would cause “significant losses” for non-bank institutions — such as pensions funds, hedge funds and private equity firms — forcing many to sell assets and amplify the shock. The exercise required a group of more than 50 City of London institutions to model how a period of intense stress would ripple through the increasingly important non-bank sector. It underlines how regulators are shifting their focus to risks arising outside the banking system. The so-call...
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The writer is former chief of MI6 and UK ambassador to the UN America’s friends and allies wait anxiously as the new Trump administration takes shape and its thinking on the world’s conflicts emerges. None more so than Britain, traditionally the US’s closest ally on defence and security. There is opportunity amid the risk. On Ukraine, a new diplomatic initiative is badly needed to halt the carnage, preserve Ukraine as a nation and reduce the danger of Russian escalation beyond Ukraine’s borders. But what happens if, as is quite possible, the two parties cannot agree? Does Donald Trump simply walk the Americans away, taking their battlefield kit with them, and leave the mess to Europe to sort out? The fact that Elon Musk recently met Iran’s ambassador to the UN suggests that both the Iranian leadership and the Trump team are toying with the idea of a deal to end Iran’s nuclear weapons activities, curb its support for militias outside Iran and ease sanctions. It soun...