Bank of England launches biannual systemic risk survey for 2026 H1
The Bank of England has launched its biannual Systemic Risk Survey for the first half of 2026. The survey gathers market participants' views on potential threats to the stability of the UK financial system.
Identifying key threats to UK financial stability
The Bank of England conducts this biannual survey to identify market perceptions of risks that could cause significant loss of confidence in the UK financial system.
Respondents are asked to list the top five risks with the greatest potential impact, both from within the UK and externally.
The survey also probes which of these identified risks would be most challenging for firms to manage and which are considered most probable to materialise.
Examples of risk categories provided to participants include cyber attacks, climate risk, geopolitical risk, deterioration in economic outlooks, and risks associated with artificial intelligence, among others.
The aim is to gather a comprehensive view of the risk landscape from those directly operating within the financial markets.
Assessing aggregate risk and confidence
The second block of the survey focuses on aggregate risks to the UK financial system.
Participants are asked to assess the probability of a high-impact event occurring in both the short term (0-12 months) and medium term (1-3 years), and how this probability has changed over the past six months.
Furthermore, the survey gauges respondents' confidence in the overall stability of the UK financial system for the next three years, inquiring whether this confidence has increased, remained unchanged, or decreased recently.
This section also asks if the risks outlined by the Financial Policy Committee (FPC) in its latest Financial Stability Report (FSR) accurately reflect the current environment.
A crucial barometer for policymakers
This biannual survey serves as a vital tool for the Bank of England, offering qualitative insights into market sentiment often missed by quantitative models.
While confidentiality ensures candid responses, its reliance on subjective perceptions positions it more as an early warning system than a definitive forecast.
Its true value lies in informing the Bank's risk assessment and fostering dialogue, rather than predicting specific events.
Source: Systemic Risk Survey Results - 2026 H1
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