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The risks stalking the UK economy 

December 1, 2015

Kamal Ahmed, BBC News

Managing risk is a balancing act. Be too risk-averse and there is danger of creating the "stability of the graveyard".

Yes, banks would be stable and safe, but they would not be lending sufficiently to the real economy or supporting growth.

On the other side, no one wants to see a return to the chaos of the financial crisis when banks were stuffing themselves to the point of sickness in a world of ever increasing, cheap credit.

Before 2007, risk was so misunderstood, at the first sign of financial stress a number of banks blew up.

And the global financial sector nearly ground to a halt.

Today, the Bank of England has produced two reports dealing with the issue of financial stability.

Its key message? That the UK's major banks are in a relatively resilient state and that the need for ever higher regulatory controls is coming to an end. Read more

 
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