The Bank of England will launch an exercise very soon to test how non-bank financial institutions’ react to market stress, senior BoE regulator Sarah Breeden said on Friday.
“The Bank is very shortly launching its exploratory exercise to enhance understanding of the risks to and from non-banks, their behaviours, and how these behaviours can amplify shocks,” Breeden told a financial services conference in London.
Read More: Bank of England Set to Probe Non-Banks on Market Risks, Says Regulator