Fears of a cataclysmic crisis subside
Tuesday 18 June 2013
Financial risk managers believe the chances of a cataclysmic crisis have fallen back to their lowest level for five years, the Bank of England said yesterday.
Its twice-yearly Systemic Risks Survey of managers at UK-based banks, insurers and investment funds found less than a quarter of respondents – 24 per cent of financial institutions surveyed – are braced for a "high-impact event" to hit Britain's financial system over the next three years. This compares with nearly half, or 43 per cent, when the Bank last carried out the survey in October.
The improvement in sentiment comes with declining fears of a sovereign default in the troubled eurozone, after the European Central Bank moved to quell debt market fears nearly a year ago.
More risk managers now consider an economic downturn the main threat – cited by 79 per cent of respondents – compared to 76 per cent whose chief worry is the eurozone. "Concerns about sovereign risk have dropped back to the level last seen in the second half of 2011," the Bank said.
But a trio of new threats has emerged on the radar. One in four risk managers are now worried about over-inflated property prices, following the Government's raft of initiatives to boost the property market. Fears over cyber-security are also concerning risk managers, while 24 per cent are now concerned over artificially low interest rates creating distortions and inflating the price of riskier assets.
Interest rates have been held at their current 0.5 per cent record low since March 2009.
- 1 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who ran away after argument with her parents
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...