Overview
- Governor Andrew Bailey told peers the failures of First Brands and Tricolor must be taken very seriously and could signal broader fragility.
- The Bank will run a stress-testing war game with private equity and credit firms to shine a light on vulnerabilities in non‑bank lending.
- Participation by private equity firms, insurers and asset managers will be voluntary because these markets sit outside traditional supervision.
- Deputy governor Sarah Breeden flagged risks including high leverage, opacity, weak underwriting and complex interconnections, noting parallels with 2008.
- The collapses have produced multimillion‑dollar losses at some US banks, and analysts warn rate‑sensitive sectors like autos and commercial real estate remain under strain.