The Bank's twice-yearly Systemic Risk Survey, conducted between 20 September and 21 October, shows that 88 per cent of respondents thought the probability of a "high-impact event" in the near future had increased.
Around 18 per cent of those questioned said that the risk of such a shock was "very high", up from zero in the first half of the year. Around 37 per cent put the risk as "high", up from 15 per cent.
The risk of a sovereign default and a return to recession were cited as the gravest dangers to financial firms by 76 per cent of respondents. A danger that banks would be unable to fund themselves in the wholesale capital markets was cited by 57 per cent.
Around 38 per cent pointed to the risk of new regulations and taxes, while around 26 per cent cited the risk of a financial institution failing. Fewer respondents cited the risk of corporations failing, a collapse of house prices and inflation.
The Bank's newly-created Financial Policy Committee (FPC) regulator meets today to consider the safety of UK banks and financial firms and will scrutinise the survey’s findings. It is the first time that the survey, which began in July 2008, has been published separately.
Paul Tucker, Deputy Governor of the Bank and a member of the FPC said: "We hope that the inaugural publication of detailed survey results will be of wide interest, shedding greater light on market participants' current views of confidence and risk.”
For more information, please contact Glazers, Chartered Accountants London or visit www.glazers.co.uk
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