FACTBOX - Bank of England presents stability wishlist

LONDON (Reuters) - The Bank of England said on Thursday substantial work is underway on responding to market turmoil and it has put together a wish list of actions that would help in its twice-yearly Financial Stability Report.

LARGER CAPITAL BUFFERS - The Bank of England says high capital buffers would improve confidence by increasing banks' resilience to sudden changes in market sentiment and by strengthening their capacity to handle a potential downturn.

IMPROVED DISCLOSURE - The Bank of England wants banks to supply more consistent, frequent and co-ordinated information on their financial positions.

CLARITY ON APPLICATION OF MARK-TO-MARKET ACCOUNTING -- The Bank of England said authoritative guidance is needed on the application of fair-value accounting rules when market prices are dislocated from fundamental values.

ENHANCED INFORMATION ON COMPLEX INSTRUMENTS -- The Bank of England said originators, arrangers and distributors should provide better information on the distribution of underlying assets at issuance and through the life of the security.

The BoE said action was also needed to boost the ongoing stability of the financial system to prevent future crises.

BETTER GOVERNANCE OF RISK MANAGEMENT - The Bank of England said management should review whether the structure and effectiveness of risk management in their firms are commensurate with risks.

IMPROVED LIQUIDITY RISK MANAGEMENT - The Bank of England said firms should increase their liquidity buffers. Stronger international standards are needed.

DIFFERENTIATED RATINGS INFORMATION - Agencies should differentiate ratings of structured products from single-name ratings and provide fuller information on the uncertainties around.