SDG 8: Decent Work and Economic Growth
SDG 16: Peace, Justice & Strong Institutions
Institutions: Reserve Bank of India; Ministry of Finance; Securities and Exchange Board of India
The July 2025 Financial Stability Report assesses the resilience of the UK financial system amidst heightened global uncertainty. Key threats include geopolitical tensions, fragmented trade and financial markets, and sovereign debt pressures.
Despite April’s market turmoil - prompted by US trade policy announcements - UK markets and core infrastructure remained orderly, reflecting strong operational resilience. The UK banking sector continues to be well-capitalized; the Financial Policy Committee (FPC) maintains the countercyclical capital buffer at 2%, reflecting cautious optimism. Nevertheless, vulnerabilities persist in market-based finance - with leverage and interconnectedness in non-bank entities raising concern.
The report highlights progress in monitoring NBFI leverage and outlines plans to publish aggregated exposure data, bolster resilience in the gilt repo market, and enhance the repo stress-testing toolkit. Additionally, the FPC underscores the importance of cyber-stress testing, reaffirming commitments to advance operational and digital resilience. The report connects financial stability with sustainable growth - encouraging the financial sector to better support productive investments while preserving stability.
Follow the full report here: