PREVIOUS TRADING DAY EVENTS 29 March 2023

Announcements 

K.s Financial Policy Committee FPC published its statement which includes a detailed analysis of the financial systems stability, an assessment of potential risks to financial stability and recommendations to protect and enhance the resilience of the countrys financial system.

They state that

The U.K.s banking system has sufficient capital and liquidity and it is well prepared to support the economy under stress. It remains resilient even when the U.S. reported bank failures. It is wellcapitalised and ready to support the economy in a period of higher interest rates even if economic conditions are worse than expected. However, U.K. household finances are still being stretched by increased living costs and mortgage payments.

The FPC is maintaining the U.K. Countercyclical Capital Buffer CCyB rate at 2. There is an urgent need to increase resilience in marketbased finance. The FPC recommends that TPR takes action as soon as possible to mitigate financial stability risks by specifying the minimum levels of resilience for the Liability Driven Investment LDI funds. LDI mandates in which pension scheme trustees may invest. The FPC judges that Money Market Funds MMFs should be able to withstand severe but plausible levels of investor outflows without amplifying stress or increasing risks of financial stability.

The Banks systemwide exploratory scenario will investigate the behaviours of banks and nonbank…