While speaking to BBC on the 10th anniversary of the global financial crisis (GFC), the Bank of England (BOE) Governor Mark Carney outlined key risks to the UK’s financial sector.
Key Headlines:
“history teaches us that no one can rule out another crisis”.
A large part of the work to fix the financial system has been done.
But this is not a time for complacency.
Four key risks currently faced by the UK’s financial services sector, Carney highlighted:
- High levels of household debt.
- The possibility that Brexit ends with a no-deal outcome.
- High levels of debt that is propping up the Chinese economy and how sustainable it is.
- A catastrophic cyber-attack that would render a major bank unable to operate.
Carney ranked China at the very top of those risks. He mentioned that the “level of debt is enormous relative to the size of the economy” when it comes to China.
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