The Bank of England has been surveying lenders about their clients' financial stability in the wake of the turmoil caused by President Trump's aggressive tariff policies that have disrupted financial markets.
The central bank requested details concerning market liquidity and any issues their clients might be experiencing with funding, as reported by the Financial Times, as reported by .
The Prudential Regulation Authority, tasked with overseeing banks, building societies, credit unions, insurers, and key investment firms, is actively engaged with lenders to address client concerns.
Sources familiar with the discussions informed the FT that topics included market liquidity and worries over hedge fund clients potentially failing to meet equity requirements on margin accounts.
In a recent session at the House of Commons, Chancellor Rachel Reeves declared that she had spoken with the Bank of England's governor, who "confirmed that markets are functioning effectively and that our banking system is resilient."
She also mentioned her forthcoming meeting with U.S. Treasury Secretary Scott Bessent to discuss possible relief from President Trump's imposed tariffs.
Over the weekend, global bank leaders took part in a conversation orchestrated by the Bank Policy Institute, an event reported by Sky News, where US bank executives shared their perspectives on the Trump administration's trade policy with their international colleagues.
Among the attendees were prominent banking executives, including Brian Moynihan from Bank of America, CS Venkatakrishnan from Barclays, Georges Elhedery from HSBC, and Jamie Dimon from JP Morgan.
Dimon expressed concerns about the impact of tariffs on the long-term economic alliance of the United States in a letter on Monday, stating: "I am hoping that after negotiations, the long-term effect will have some positive benefits for the United States."
In response to the situation, a spokesperson for the Bank of England mentioned: "It is standard practice for us to implement close monitoring of market liquidity conditions at times of greater volatility."
On Wednesday, the Bank of England's Financial Policy Committee is scheduled to release the minutes of its latest meeting, providing insight into its perspective on the financial market.
Furthermore, Sarah Breeden, the central bank's deputy governor, will address the consequences of the tariffs in a speech on Thursday.
