The Bank of England released the results of its biannual Systemic Risk Survey, which quantifies and tracks market participants’ views of risks to, and their confidence in, the stability of the UK financial system.
56 firms participated in the 2023 H2 survey, representing a 65% response rate.
Key results:
- Survey respondents remain confident in the stability of the UK financial system and reported a similar level of confidence to 2023 H1.
- The perceived probability of a high-impact event affecting the UK financial system in both the short term and medium term is lower than judged in the previous survey.
- Cyber attack and geopolitical risks remain the most frequently cited risks among participants. The number of participants citing risks associated with a UK economic downturn has continued to increase sharply.
- The number of survey respondents citing inflation risk has slightly increased after having decreased in the previous survey.
- The risk of cyber attack, geopolitical risk and inflation risk are still considered the most challenging for firms to manage by a significant margin.
- A number of respondents flagged artificial intelligence as posing new risks to financial stability.