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.
- 4 Alex Salmond: 'The rocks would melt with the sun before I'd ever set foot in the House of Lords'
'The Fappening': Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
The Fappening: Jennifer Lawrence leaked 4Chan sex video branded 'fake' by forum users
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...