BoE: Banks still vulnerable

The Bank of England has warned banks are still vulnerable and could slip back into trouble should the...

The Bank of England has warned banks are still vulnerable and could slip back into trouble should there be any further shocks to economic or financial sector stability. The warning follows the BoE's bi-annual financial stability report which also sets out five areas where it intends to strengthen policy in the wake of the ongoing financial crisis. As well as identifying areas in which the sector will need to tighten policy, the BoE has warned banks are still very highly leveraged and remain sensitive to economic and financial shocks which could in turn affect economic recovery and flo...