Have the dangers of one other monetary disaster been eradicated within the 10 years for the reason that collapse of Lehman Brothers?
Not completely, in response to Financial institution of England Governor Mark Carney.
“Might one thing like this occur once more?” he mentioned in an interview with the BBC. “Might there be a set off for a disaster? If we’re complacent, in fact it may.”
The central banker, who has prolonged his time period on the Financial institution of England to January 2020, cited 4 large dangers to the monetary system: China, a foul Brexit, cyberattacks on banks and UK family debt.
“China is a superb supply for progress for the worldwide financial system, it is an absolute financial miracle, a number of positives,” mentioned Carney.
“On the identical time, their monetary sector has developed very quickly, and it has made lots of the identical assumptions that have been made within the run as much as the final monetary disaster,” he added.
The primary foreigner to guide the Financial institution of England, Carney can be chair of the Monetary Stability Board, a global physique that screens the worldwide monetary system.
US funding financial institution Lehman Brothers failed in September 2008, setting off a cascade of occasions that plunged economies across the globe into extended recessions and compelled central banks to introduce large stimulus.
CNNMoney (London) First printed September 12, 2018: four:47 AM ET