The Bank of England warned yesterday the eurozone debt crisis posed a risk to Britain’s financial system and urged its banks to build up their reserves.
In its Financial Stability Report, the bank praised the 750 billion euro (US$1 trillion) EU-IMF stabilization fund put together last month to prop up the euro after markets took fright at Greece’s debt problems.
However, it warned of continuing “market pressures” which could affect Britain’s financial system. “The IMF and European authorities put in place a substantial package of support,” it said. “While these measures helped to stabilize conditions, market pressures have not yet abated.”
Despite Britain not being a member of the 16-nation eurozone, the bank said the exposure of the country’s financial system to institutions caught up in the currency crisis was a major danger.
It noted there was a risk to Britain’s financial institutions when dealing with “European banks that have direct exposures to countries facing increased sovereign risks.”
The report, which the bank publishes twice a year, also expressed fears over investors retreating from risk in the wake of the crisis, which could endanger banks’ ability to renew billions of pounds in existing funding.
The UK central bank welcomed banks’ efforts to increase their capital, which it said had “helped them weather recent tensions.”
However, it warned of “a number of challenges in the period ahead,” which included increasing lending to help Britain secure its recovery from a record recession and building up bigger reserves in line with expected new regulatory demands.
Britain’s banks “have a collective interest in providing sufficient lending to support economic recovery,” the report said. “They will need over time to build larger buffers of capital and liquidity to meet more demanding future regulatory requirements.”
A tougher new regulatory regime for banks will be agreed later in the year.
RESILIENCE: Deepening bilateral cooperation would extend the peace sustained over the 45 years since the Taiwan Relations Act, Greene said Taiwan-US relations are built on deep economic ties and shared values, American Institute in Taiwan (AIT) Director Raymond Greene said yesterday, adding that strengthening supply chain security in critical industries, enhancing societal resilience through cooperation and deepening partnerships are key to ensuring peace and stability for Taiwan in the years ahead. Greene made the remarks at the National Security Youth Forum, organized by National Taiwan University’s National Security and Strategy Studies Institution in Taipei. In his address in Mandarin Chinese, Greene said the Taiwan-US relationship is built on deep economic ties and shared interests, and grows stronger through the enduring friendship between
GAINING STEAM: The scheme initially failed to gather much attention, with only 188 cards issued in its first year, but gained popularity amid the COVID-19 pandemic Applications for the Employment Gold Card have increased in the past few years, with the card having been issued to a total of 13,191 people from 101 countries since its introduction in 2018, the National Development Council (NDC) said yesterday. Those who have received the card have included celebrities, such as former NBA star Dwight Howard and Australian-South Korean cheerleader Dahye Lee, the NDC said. The four-in-one Employment Gold Card combines a work permit, resident visa, Alien Resident Certificate (ARC) and re-entry permit. It was first introduced in February 2018 through the Act Governing Recruitment and Employment of Foreign Professionals (外國專業人才延攬及雇用法),
The Ministry of Transportation and Communications yesterday said that it would redesign the written portion of the driver’s license exam to make it more rigorous. “We hope that the exam can assess drivers’ understanding of traffic rules, particularly those who take the driver’s license test for the first time. In the past, drivers only needed to cram a book of test questions to pass the written exam,” Minister of Transportation and Communications Chen Shih-kai (陳世凱) told a news conference at the Taoyuan Motor Vehicle Office. “In the future, they would not be able to pass the test unless they study traffic regulations
‘COMING MENACINGLY’: The CDC advised wearing a mask when visiting hospitals or long-term care centers, on public transportation and in crowded indoor venues Hospital visits for COVID-19 last week increased by 113 percent to 41,402, the Centers for Disease Control (CDC) said yesterday, as it encouraged people to wear a mask in three public settings to prevent infection. CDC Epidemic Intelligence Center Deputy Director Lee Chia-lin (李佳琳) said weekly hospital visits for COVID-19 have been increasing for seven consecutive weeks, and 102 severe COVID-19 cases and 19 deaths were confirmed last week, both the highest weekly numbers this year. CDC physician Lee Tsung-han (李宗翰) said the youngest person hospitalized due to the disease this year was reported last week, a one-month-old baby, who does not