Friday June 26, 12:16 AM
FACTBOX-Bank of England's main financial stability fears
LONDON, June 26 (Reuters) - British banks remain vulnerable despite a recent improvement in funding conditions and perceptions of their resilience, the Bank of England said in its twice-yearly Financial Stability Report on Friday.
Following is a list of some of the main concerns mentioned by the BoE in its report, alongside the main fears of the financial industry itself in a poll commissioned by the BoE.
For a full story about the report, see
For a factbox on regulatory proposals, see
* BoE's main concerns
- adverse economic or financial sector developments
- banks' refinancing needs when government support ends in 2011-12
- further damage to banks' assets from exposure to commercial property or indirectly to European emerging economies via euro zone counterparties
- possible inability of government to easily fund further bank bail outs in another major crisis
- disruption to funding markets due to investors' worries about cross-border risks or sovereign debt downgrades
* Market participants' top five fears
MAY 2009
1. Economic downturn
2. Borrower defaults
3. Pressures in funding markets
4. Regulatory and accounting changes
5. Credit conditions
JULY 2008
1. Failure of financial institutions
2. Economic downturn
3. Property prices
4. Pressures in funding markets
5. Financial market dislocation
(Survey participants from UK banks, large complex financial institutions, hedge funds, asset managers and insurers)
(Reporting by David Milliken; Editing by Victoria Main) Keywords: BRITAIN BANK/STABILITY FEARS
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