UK: FPC publishes financial stability report

The Financial Policy Committee has published its first financial stability report under the new financial regulatory framework that came into existence earlier this year: see here. An executive summary, containing the recommendations that the FPC has made to the Prudential Regulation Authority and Financial Conduct Authority, is available here (pdf). Amongst other things, the FPC has requested that the PRA and FCA provide, by September 2013,
an assessment of the vulnerability of borrowers and financial institutions to sharp upward movements in long-term interest rates and credit spreads in the current low interest rate environment. The PRA has also been asked to continue working with banks and building societies to ensure the greater consistency and comparability of their Pillar 3 disclosures, including reconciliation of accounting and regulatory measures of capital.