Bank of England warns of liquidity and credit risk problems

The rapid growth in credit markets meant risk monitoring and risk assessment could both have been harmed, and firms had become more dependent on the maintenance of market liquidity, the report said. "These drivers have potentially increased the vulnerability of the financial system as a whole," it added.

Low lending rates and narrow spreads also meant leverage was extremely high, which again increased the system's exposure to operational problems or the failure of a single entity.

The bank recommended that institutions should improve stress testing, develop their resilience to operational problems and improve crisis management.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Stemming the tide of rising FX settlement risk

As the trading of emerging markets currencies gathers pace and broader uncertainty sweeps across financial markets, CLS is exploring alternative services designed to mitigate settlement risk for the FX market

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here