In its latest Financial Stability Report, the FPC has published its latest stress testing results and current view on the stability and state of the UK financial system.
In addition to its comments on open-ended funds, the FPC
- looks forward to confirmation by the end of December of the recent proposal from the European Commission to extend the temporary equivalence arrangements for CCPs
- is maintaining its recommendation that mortgage lenders limit loans at or above 4.5% of income to 15% of new mortgages, and that they should assess whether borrowers could meet mortgage payments if they were 3 percentage points above their reversionary rate
- considers that payment chains that use stablecoins, such as the proposed Libra token, and firms that are critical to their operation, and certain manifestations of stablecoins themselves, should be regulated to standards equivalent to those applied to ‘traditional’ payment chains.