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BoE staff blog posits financial stability risks from DB schemes

Mar 6, 2017 - Investment & Pensions Europe

Secular stagnation could pose a risk to the UK's financial stability as a result of actions being taken to close funding gaps in defined benefit (DB) schemes, according to staff at the Bank of England.

Writing in a blog for staff of the central bank, Frank Eich, who works in the bank's international surveillance division, and Jumana Saleheen, head of division in the financial stability directorate, argued that a prolonged period of weak growth and low interest rates could increase funding

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