Global financial system vulnerable to shocks amid recent stock market surge, Bank of England chief warns – business live | Business
Global financial system vulnerable to shocks amid recent market surge, Bank of England chief warns
The global financial system is vulnerable to shocks amid a recent surge in the price of shares and other assets, Bank of England governor Andrew Bailey has warned.
Bailey, chairman of the Financial Stability Board (FSB), the fiscal risk watchdog for the G20 group of nations, urged greater multilateral co-operation between nations to help support global financial systems.
In a letter to G20 ministers, he said that increased debt levels and a failure to fully implement agreed financial reforms would lead to increased vulnerability.
Bailey cautioned that there could be a “disorderly adjustment”, i.e. a slump in asset prices from recent highs.
