Posted 11/10/2023, 3:02:00 PM
Bank of England to Stress Test UK Financial Firms on Handling Major Bond Market Crash
- Bank of England to test UK banks, insurers, pension funds on how they would handle a major bond market crash
- Comes after volatility caused pension fund issues in 2022; aims to simulate crisis on scale of 2007/08
- Scenario includes sharp rise in government bond yields, corporate bond yields, like March 2020 & October 2022
- Over 50 institutions including banks, insurers, funds must show how they'd respond in hypothetical crisis
- Results published end of 2023 to assess overall financial system resilience, not individual businesses