A New Approach to Assessing Risks to Financial Stability

46 Pages Posted: 14 Aug 2009

See all articles by Andrew Haldane

Andrew Haldane

Bank of England

Simon Hall

Bank of England

Silvia Pezzini

Hong Kong Monetary Authority

Date Written: April 11, 2007

Abstract

The Bank’s July 2006 Financial Stability Report (FSR) included a new approach to assessing risks to the stability of the UK financial system. This paper explains the methodology and analysis behind this work and outlines what is being done to improve and extend it. Section 1 of the paper sets out the conceptual rationale for this approach. Section 2 describes its practical implementation in the July 2006 FSR, with further detail on methodology provided in a series of annexes. Section 3 concludes by discussing how this framework is being developed over time to improve the analysis of risks to the UK financial system and to strengthen the management of these risks by the financial sector.

Suggested Citation

Haldane, Andrew and Hall, Simon and Pezzini, Silvia, A New Approach to Assessing Risks to Financial Stability (April 11, 2007). Bank of England Financial Stability Paper No. 2. Available at SSRN: https://ssrn.com/abstract=1447879 or http://dx.doi.org/10.2139/ssrn.1447879

Andrew Haldane

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Simon Hall (Contact Author)

Bank of England ( email )

Threadneedle Street
London, EC2R 8AH
United Kingdom

Silvia Pezzini

Hong Kong Monetary Authority ( email )

3 Garden Road, 30th Floor
Hong Kong
Hong Kong

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