Laura WilesThe BoE has published the results of its H1 2025 Systemic Risk Survey. The survey aims to quantify and track market participants’ views of risks to – and their confidence in – the stability of the UK financial system.
Key results from the H1 survey included:
- Overall, respondents remain confident in the stability of the UK financial system over the next three years. However, confidence levels fell relative to the H2 2024 survey;
- Perceived probability of a high-impact event affecting the UK financial system in both the short and medium term increased for the first time since H2 2022;
- Geopolitical risk and cyberattack remain the most frequently cited risks, and by a significant margin are still considered the most challenging to manage:
- Geopolitical risk continues to be considered by a majority as the most likely risk to materialise;
- However, the share of respondents citing cyberattack as their ‘number one’ source of risk has declined; and
- An increase in respondents citing risks associated with a UK economic downturn compared with H2 2024. A larger share of respondents also cited operational risks and financial market disruption / dislocation.
The H1 survey was conducted between 27 January and 24 February 2025. 55 firms participated, representing a 68% response rate.