The Bank of England (the Bank) has published the results of its systemic risk survey for the first half of 2015. The biannual survey is conducted by the Bank to quantify and track market participants' views of risks to, and their confidence in, the UK financial system.

The results reflect the views of the market participants who contributed to the survey rather than the Bank, including those of hedge funds, banks, building societies, asset managers, large foreign banks and insurers.

Key outcomes of the survey include:

  • The perceived probability of a high-impact event in the UK financial system over both the short and medium-term has increased with 15% of respondents now considering the probability high or very high over the next year.
  • Respondents remained confident in the stability of the UK financial system, with 21% very confident and 69% fairly confident.
  • The two principal risks to the UK financial system identified were sovereign risk and the risk of an economic downturn (mentioned by 58% and 56% of respondents respectively).