FPC highlights NBFI resilience

The headlines from the FPC’s March report are:

• that overseas bank failures have increased investor caution;
• UK banks are resilient and are strong enough to support households and businesses;
• UK household and business finances remain under pressure from higher borrowing costs and prices; and
• non-bank financial institutions need more resilience.

On this last point, the regulators are particularly concerned about LDI funds and MMFs.