Don't ignore signs of vulnerability in financial system: BIS

London

THE Bank of International Settlements (BIS) has issued yet another stark warning that lessons have not been learnt from the financial crash.

There were several stages of that financial crash that climaxed in the final quarter of 2008 and early 2009. Ten years ago there was a run and then a total collapse of the British bank Northern Rock. The capital of most banks has increased since then. But despite that the Adam Smith Institute agrees with the BIS, the central banks' central bank. It agrees that the financial system could be vulnerable to an unexpected rise in inflation followed by a sudden rise in short and long-term interest rates.