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BoE's Woods saw 'material' global risks to UK financial stability before EU vote 

July 19, 2016

Ana Nicolaci da Costa and Costas Pitas, editing by David Milliken, Reuters

Bank of England Deputy Governor Sam Woods saw big global risks to British financial stability, in particular from emerging markets, according to a statement he wrote before his appointment, which was published on Tuesday.

Answering questions first posed by lawmakers before Britain's decision to leave the European Union, he said the biggest domestic risk to financial stability was uncertainty around the referendum.

The housing market also posed risks, he said, noting strong growth in the buy-to-let sector since the financial crisis.

"I see material global risks to UK financial stability – in particular the risks from emerging market economies, recent changes in the functioning and liquidity of financial markets, and the impact of persistent low rates on the business models of banks and insurers," Woods said.

"Domestically, there are financial stability risks from property market," he added. Read more

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