Thursday, March 26, 2015

London Financial sector risks...

Risks seen by Bank of England's Financial Policy Meeting from its 24th March 2015 released on 26 March 2015[1]

  • ·         The risk of low nominal growth in the euro area.
  • ·         A further slowdown in China 
  • ·         A slowdown in some emerging economies
  • ·         The stance of monetary policy, It  begins to diverge globally.
  • ·         Greece and its financing needs, including in the near term.

  • ·         Investment allocations and pricing of some securities may presume that asset sales can be performed in an environment of continuous market liquidity, although liquidity in some markets may have become more fragile. 
  • ·         Heightened volatility which could deternin!inancial stability.  
  • ·         Trading volumes in fixed income markets have fallen relative to market size including in US  treasury markets in October 2014,
  • ·         Sudden changes in market conditions
  • ·         Household indebtedness remains high
  •   Underwriting standards, may have have loosened recently, as measured by loan-to-value and interest coverage ratios. 




[1] Bank of England News Release - Financial Policy Committee statement from its meeting, 24 March 2015


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