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Bank of England Financial Stability Report
Economic recovery in the United Kingdom, and in some other advanced economies, has strengthened and UK banks’ capital positions have improved. That has boosted confidence in financial stability, as evident in the Bank’s recent Systemic Risk Survey. But financial stability risks remain, including from the high indebtedness of some sovereigns, corporates and households. These vulnerabilities have been kept in check by low interest rates and other policy interventions. A sharp rise in interest rates, especially if not associated with a strengthening in incomes, could test financial system resilience. There are also ... (full story)