Bank of England is worried about risks hitting simultaneously, Bailey says

The Bank of England is worried about the possibility that risks for banks and other financial firms materialise at the same time, Governor Andrew Bailey said on Tuesday.

Conflict in the Middle East, volatile sovereign bond yields, higher market interest rates and risky credit markets all pose risks, Bailey said after the BoE published a half-yearly Financial Stability Report which included a warning of dangers posed by artificial intelligence.

"Since our last FSR, some of these vulnerabilities have become more pronounced, most notably due to a substantial increase in the use of leverage in equity markets," Bailey told reporters. "The FPC is particularly concerned that a number of these vulnerabilities could crystallise simultaneously."