UK politics, including Britain’s exit from the European Union, was put as the biggest risk to financial stability by most executives from financial companies and large non-financial companies in the Bank’s Systemic Risk Survey.
But lenders were more worried by hacking and digital attacks.
Regulation and taxation was also cited as threat to stability, mentioned by almost a third of executives – a slightly higher proportion than the same survey in the first half of 2017.
Geopolitics, a UK economic downturn, monetary or fiscal policy and property price falls were labelled as the other big risks by executives.
More confidence in the UK financial system
Overall, participants were found to be more confident in the stability of the UK financial system over the next three years, compared to the previous survey.
At the same time, the Bank of England published its annual stress test of banks and building societies.