Peter Rothwell, Head of Banking at KPMG in the UK, said:
“As expected, the test scenario targets areas of concern previously highlighted by the Bank of England, such as the large non-bank sector. The scenario reflects lessons learned from events such as last year’s pensions crisis and pandemic-related market stresses, as the Bank tries to develop a deeper understanding of the market interactions that could undermine system-wide stability.
“The move to widen the scope of stress-testing coincides with concerns from regulators and industry leaders that the next global financial crisis may stem, not from actions within the financial sector, but from geopolitical events that shake market stability. Given the increasing interconnectedness of the financial system, greater financial and operational resilience will be required across the sector to ensure that stability is maintained.”
