Market news
05.07.2016, 10:03

Bank of England financial stability report: will give insurers more flexibility to deal with a sharp fall in market interest rates

  • Will reduce counter cyclical capital buffer to 0.0% from 0.5% with immediate effect until June 2017 at the least

  • CCB cut will reduce buffer by £5.7bn and raise bank lending capacity by £150bn (not mil as I put in the title)

  • FPC is ready to take any further action needed to support financial stability

  • Will give insurers more flexibility to deal with a sharp fall in market interest rates

  • BOE stands ready to take action to ensure capital and liquidity buffers can be drawn on to support lending

  • BOE needs to reduce any pressure on firms to restrict supply of credit and provision of financial services

  • BOE closely monitoring commercial real-estate, buy-to-let, investor appetite for UK assets and fragile market liquidity

  • Current outlook for financial stability is challenging and some Brexit risks are starting to crystallise

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