On June 19, 2023, the Bank of England announced the launch of
its first system-wide exploratory scenario (SWES) exercise and
published a new webpage setting out relevant information.
The Bank has asked a group of banks and non-bank financial
institutions (NBFIs) to provide information on how they react to
turbulence in financial markets, such as the gilts crisis in autumn
2022.
The Bank hopes to enhance its understanding of the risks to and
from NBFIs, and the behaviour of NBFIs and banks in stress,
including what drives those behaviours. It also hopes to
investigate how those behaviours and market dynamics can amplify
shocks in markets and potentially pose risks to UK financial
stability.
