BOE Sees Challenging Outlook for U.K. Banks on Emerging Markets
- Greece risk has eased; China, fine concerns increase, BOE says
- Countercyclical buffer rate held at 0% as CET1 ratios near 12%
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The Bank of England said the U.K. financial-stability outlook “remains challenging” as increasing risks to the system from emerging markets offset its improved resilience.
“The immediate risks in relation to Greece and the euro area have fallen somewhat from their acute level” in July, the BOE’s Financial Policy Committee said in a report Friday. “However, other downside risks to U.K. financial stability stemming from the global environment, and to which the United Kingdom as a global financial center is exposed, have increased. These risks come from both China and emerging market economies more broadly.”