The Bank of England has expressed concerns about the readiness of non-bank financial institutions during times of crisis.

These institutions, such as hedge funds, asset managers, and pension providers, often struggle to predict the actions of their counterparties, investors, and markets when faced with financial stress.

The Bank of England conducted extensive research over the course of a year to examine how different market participants would respond to sudden shocks in global financial markets.

The findings revealed significant vulnerabilities within the non-bank sector, raising doubts about their ability to effectively navigate potential crises.