Navigating Financial Stability Risks

This chapter examines the importance of financial stability reports in forecasting potential crises, focusing on geopolitical risks and cyber security concerns. It highlights the insights gained from discussions with the Bank of England's Financial Policy Committee, their role in spotting market vulnerabilities, and the implications of the current risk landscape in the UK compared to the EU and US. Additionally, it addresses the balance of regulatory actions aimed at enhancing competitiveness while maintaining financial stability amidst changing borrowing costs.