In its Financial Stability Report (FSR), the Bank of England warns of the risks of a no-deal Brexit and global financial vulnerabilities. Here are the highlights:
- Perceived likelihood of no-deal Brexit has risen.
- Market volatility will increase after a disorderly Brexit.
- No-deal Brexit could cause material economic disruption.
- UK banks have enough capital to handle a disorderly Brexit.
- Sees risks in high debt levels, and corporate leverage.
- Foreign investment to commercial real estate and leveraged loans has fallen 60%-80% in first quarter of 2019.
- Mismatch in open-ended funds could pose systemic risks
- Central bank will review how to address the issue of liquidity mismatch
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