BOE’s Kashyap: GBP flash crash happened at a time when liquidity was thin was ‘not an accident’

Bank of England (BOE) newest Financial Policy Committee (FPC) member Kashyap is on the wires now, via Reuters, being testified by parliament’s Treasury Select Committee (TSC).

Key Quotes:

Particularly worried about contagion from stress coming from the European banks & whether there might be linkages to UK banks

Doesn’t see current account deficit as a ‘big financial stability risk’           

GBP fall raises questions about funding mismatches & hedging

Should continue monitoring household debt, buy-to-let pressures

Even if GBP moved ‘substantially’, wouldn’t have concern for banks' health

'Very concerned' about possibility of economic slowdown after Brexit vote

GBP flash crash happening at a time when liquidity was thin was ‘not an accident’

Deutsche bank weakness not down to not current capital, weakness caused by worries over future profits