BOE governor Carney spoke to BBC on the 10th anniversary of the financial crisis
- A large part of the work to fix the financial system has been done
- But this is not a time for complacency
He also outlined four key risks currently faced by the UK's financial services sector, that being:
- High levels of household debt
- The possibility that Brexit ends with a no-deal outcome
- High levels of debt that is propping up the Chinese economy and how sustainable it is
- A catastrophic cyber-attack that would render a major bank unable to operate
When asked on his thoughts of major risks globally, Carney ranked China at the very top of those risks. He mentioned that the "level of debt is enormous relative to the size of the economy" when it comes to China.
Although China has been strongly cracking down on financial risks and stepping up efforts in deleveraging, there will still be major worries surrounding shadow banking and what not in the financial sector there. And that perception will take quite some time to change. This is only the beginning.
