Foreword 1
Overview 5
Box A The Special Liquidity Scheme 10
1 Shocks to the financial system 15
Box 1 Comparison of measures of sub-prime losses 18
2 Structure of the financial system 27
Box 2 Major UK banks’ exposures to commercial real estate 31
Box 3 Monoline distress and the implications for banks 36
Box 4 Assessing the capital position of UK banks 40
3 Prospects for the UK financial system 43
Box 5 Key sources of vulnerability to the UK financial system: an update 50
4 Mitigating risks to the UK financial system 54
Box 6 Central bank operations 58
Box 7 Procyclicality in the Basel II framework 65
Box 8 A special resolution regime for banks 67
Other financial stability publications 71
Index of charts and tables 75
Glossary and other information 77
Contents