This article is just an example of the content available to mallowstreet members.
On average over 150 pieces of new content are published from across the industry per month on mallowstreet. Members get access to the latest developments, industry views and a range of in-depth research.
All the content on mallowstreet is accredited for CPD by the PMI and is available to trustees for free.
Lee Foulger, director for financial stability strategy and risk at the Bank of England, has given further information on the central bank's planned exploratory exercise into the financial system as a whole when under stress, including through leverage and liquidity mismatches.
The exercise will be conducted in two stages, he explained, an initial information gathering phase, and a scenario phase. The latter will begin in the fourth quarter of this year.
In a speech on Wednesday, he said: "An exercise of this type – spanning the financial system and drawing in the contributions of so many firms – has never been done before."
Foulger added that "to do this successfully requires a good dose of realism. We don't come to this expecting to reach all the answers. We're taking an especially collaborative approach to this exploratory scenario exercise – with the participating firms, as well as with external communities and experts." The bank will also be working with the Financial Conduct Authority and the Pensions Regulator.
Sarah Breeden, executive director for financial stability strategy and risk, suggested last week that further frameworks might need to be built up to strengthen resilience, after the recent introduction of a minimum buffer expectation for leveraged liability-driven investment. Regulators decided to introduce this because of unprecedented gilt yield swings last autumn, in reaction to the former government's fiscal announcements.
