LONDON (dpa-AFX) - The uncertainty around the global risk outlook remains materially elevated compared to the time of the November report, the Financial Policy Committee of the Bank of England said Wednesday.
Although financial stability risks did not crystallize, conditions would likely have become worse had the volatility continued for longer, the FPC said in its half-yearly Financial Stability Report.
The report highlighted that risks and uncertainty associated with geopolitical tensions, global fragmentation of trade and financial markets and pressure on sovereign debt markets are still elevated and some of these risks have crystallized.
As an open economy, these risks are particularly relevant to UK financial stability, the committee noted.
The UK banking system remains in a strong position to support households and businesses, even if economic, financial and business conditions became substantially worse than expected, said FPC.
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