Market news
08.10.2021, 10:26

BoE's Financial Policy Committee: There is evidence of heightened risk-taking in some financial markets

  • UK banking system is strong enough to continue to support households and businesses through economic recovery
  • UK financial system is resilient to risks from the higher level of debt among UK businesses; the way these risks evolve will depend on how the economy recovers from the pandemic
  • The increase in debt in UK corporate sector has been concentrated in some sectors and types of businesses, in particular in small and medium-sized enterprises (SMEs)
  • There is evidence that investors are taking higher levels of risk in some global markets, e.g. there are fewer protections in place when investors lend to companies with high levels of debt in so-called "leveraged loan" markets, and the prices of some financial assets appear high relative to historical norms
  • We are monitoring these risks closely. We are also working with UK and other international authorities to make market-based finance more resilient to shocks, so that financial markets can support economy in bad times as well as good
  • Asset valuations could correct sharply if, for example, market participants re‐evaluate prospects for growth, inflation or interest rates; any such correction could be amplified by vulnerabilities in market‐based finance that were exposed in March 2020. This could have consequences for market functioning and financial conditions, and hence real economy
  • Cryptoasset markets continue to grow rapidly, but currently pose limited risk to UK financial stability
  • However, regulatory and law enforcement frameworks, both domestically and at global level, need to keep pace with developments in these fast-growing markets in order to manage risks

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location