No Result
View All Result
Success American Investors
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Success American Investors
No Result
View All Result
Home Investing

Bank of England warns of growing financial risks from trade war

by
December 2, 2024
in Investing
0
Bank of England warns of growing financial risks from trade war
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

The Bank of England has warned that escalating trade wars, geopolitical instability, and mounting global debt levels are amplifying risks to the UK’s financial system.

Officials noted the country’s vulnerability due to its “open economy with a large financial sector,” according to the Bank’s latest Financial Stability Report.

Andrew Bailey, the Bank’s governor, highlighted the uncertain environment, stating, “We are living in a world that is more uncertain on a number of fronts. We are watching these risks very carefully.”

Key concerns include the fragmentation of global trade as conflicts in Ukraine and the Middle East intensify and as the US considers imposing tariffs on countries such as China, Mexico, and Canada. Rising government debt in nations like the UK and the US also poses significant vulnerabilities.

The report identified increasing risks outside traditional banking, particularly in the shadow banking sector, encompassing private equity firms and hedge funds. The sector has been linked to market crises, such as the 2022 pension fund turmoil and the Archegos collapse earlier that year.

To address these risks, the Bank conducted the world’s first stress test of the UK’s broader financial system, simulating a severe market shock across banks, hedge funds, pension funds, and insurers. The findings revealed potential fragility in the sterling corporate bond market and a mismatch of expectations in the gilt repo market, signalling vulnerabilities during periods of financial stress.

While Britain’s biggest banks passed separate annual stress tests with sufficient capital buffers, the Bank announced that these assessments would now occur biennially, with supplementary evaluations in intervening years.

The Bank also flagged concerns over private equity ownership of life insurers, cautioning that it could pose additional systemic risks.

Despite these challenges, the report reaffirmed the resilience of traditional banking institutions. However, as global uncertainties rise, the Bank’s scrutiny of less-regulated financial sectors underscores the evolving complexity of safeguarding the UK’s financial stability.

Read more:
Bank of England warns of growing financial risks from trade war

Previous Post

Hunter Biden’s Pardon Is Exactly What We Should Expect from the US Regime

Next Post

Government-backed council to champion ‘unsung’ mid-sized businesses

Next Post
Government-backed council to champion ‘unsung’ mid-sized businesses

Government-backed council to champion ‘unsung’ mid-sized businesses

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!
  • Trending
  • Comments
  • Latest
Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

Vertica: The new Israeli start-up challenger to Viagra proving ‘life-changing’ for men with ED

February 14, 2024

Last Day to Give in 2023!

December 31, 2023
Idaho Bucks Managed Care Trend

Idaho Bucks Managed Care Trend

December 5, 2023

The Producer Price Index

September 9, 2023
UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

0

0

0

0
UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

July 28, 2025
Taxpayers who haven’t settled their bill with HMRC must pay by 31st July or face fines and interest

Taxpayers who haven’t settled their bill with HMRC must pay by 31st July or face fines and interest

July 28, 2025
Lip balm sales rise as Britons seek affordable luxuries in cost-of-living squeeze

Lip balm sales rise as Britons seek affordable luxuries in cost-of-living squeeze

July 28, 2025
Mr McDonald’s bows out: Doug Wright sells 26-restaurant empire after 44 years

Mr McDonald’s bows out: Doug Wright sells 26-restaurant empire after 44 years

July 28, 2025

Recent News

UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

UK padel boom triggers surge in planning applications as nearly 17,000 development sites identified

July 28, 2025
Taxpayers who haven’t settled their bill with HMRC must pay by 31st July or face fines and interest

Taxpayers who haven’t settled their bill with HMRC must pay by 31st July or face fines and interest

July 28, 2025
Lip balm sales rise as Britons seek affordable luxuries in cost-of-living squeeze

Lip balm sales rise as Britons seek affordable luxuries in cost-of-living squeeze

July 28, 2025
Mr McDonald’s bows out: Doug Wright sells 26-restaurant empire after 44 years

Mr McDonald’s bows out: Doug Wright sells 26-restaurant empire after 44 years

July 28, 2025

Disclaimer: SuccessAmericanInvestors.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.

No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock

Copyright © 2025 SuccessAmericanInvestors. All Rights Reserved.