BoE warns bond bubble threatens UK banks

Laura Miller
clock

Britain's financial system is vulnerable to increased EU sovereign debt woes and bubbles in emerging market assets and junk bonds, the Bank of England (BoE) says.

British banks' resilience improved in H2, but the threats facing them had risen at a similar pace, the Bank says in its half-yearly Financial Stability Report, according to Reuters. It urged them to use protective measures including gradual adoption of the Basel III capital requirements and new surcharges and winding-up arrangements for banks big enough to bring down the financial system. "The United Kingdom is only partially insulated given the interconnectedness of European financial systems and the importance of their stability to global capital markets," today's report says. Th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

BoE's Alan Taylor: Extended interest rate hold an 'appropriately measured policy response'

Geopolitics in the driving seat

Michael Nelson
clock 25 June 2026 • 2 min read
Advisers highlight uncertain political and fiscal future after Starmer resignation

Advisers highlight uncertain political and fiscal future after Starmer resignation

Prime minister’s exit places chancellor Rachel Reeves’ position ‘inevitably’ under scrutiny

Isabel Baxter
clock 22 June 2026 • 5 min read
OBR independence 'a major advantage' for UK economy

OBR independence 'a major advantage' for UK economy

Treasury Committee hearing

Alex Sebastian
clock 20 May 2026 • 4 min read