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Finance sector sees lowest risk of turmoil since 2008 - central bank survey
June 17, 2013 / 9:58 AM / 4 years ago

Finance sector sees lowest risk of turmoil since 2008 - central bank survey

LONDON (Reuters) - Risk managers at UK-based banks, insurers and investment funds believe the chance of another financial crisis over the next three years has fallen to its lowest since 2008, a Bank of England survey showed on Monday.

The Bank of England is seen behind holly bushes in the City of London March 15, 2013. REUTERS/Suzanne Plunkett

Some 24 percent of the financial institutions surveyed expect a “high-impact event” to affect Britain’s financial system over the next one to three years.

This is the lowest level since the survey started in 2008, and down from 43 percent when the twice-yearly poll was last conducted in October. Expectations of a crisis in the coming 12 months also dropped sharply, to 8 percent of firms.

Fears of bank funding problems or a sovereign default fell sharply, though the latter remained high on most risk managers’ watch list.

Publication of the survey coincided with Co-operative Group agreeing to a plan to plug a 1.5 billion pound ($2.4 billion) capital hole at its bank.

An economic downturn was the most commonly cited threat in the survey, and worries about future property price falls, cyber attacks and risks related to low interest rates rose sharply.

The central bank conducted the poll between April 22 and May 22, and received responses from 76 financial institutions.

For the full survey, see: here

Reporting by David Milliken; Editing by John Stonestreet

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