BoE warns bond bubble threatens UK banks

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...