Bank of England governor speaking from the Financial Stability plenary session in Tokyo 31 March
- low global nominal growth environment creates challenges
- banks need to accelerate adjustment of business models
- plenary session discussed financial vulnerabilities vs backdrop of weakening economic outlook, low price pressure and high debt levels
- credit outlook for weaker corporate issuers & some sovereigns has deteriorated, particularly those affected by commodity price falls
- banks continue to face range of challenges to profitability
- banks must do more to adjust business models to low rate environment, strengthened regulator framework
- effective macro-prudential policies can help tackle domestic financial stability vulnerabilities that may be exaggerated by volatile capital flows
Here's the rest of the FSB statement courtesy of our friends at Livesquawk
Nothing so far to rattle the scoreboard but a reality check nonetheless on global economic concerns.
