By Marcus Leach

A Bank of England survey has revealed that nearly 90% of financial firms think the chance of a 'high-impact' event happening in the next year has increased over the last six months.

According to the survey the risk of a major event, such as the collapse of the eurozone or a credit rating downgrade for the UK, is at its highest level since 2008.

The risks to the UK financial system cited by the greatest fraction of respondents in the survey were:

• Sovereign risk (76% of respondents).
• Risk of an economic downturn (76%).
• Funding risk (57%).
• Risks around regulation/taxes (38%).
• Risk of financial institution failure/distress (26%).

The survey, first launched in 2008, is aimed at monitoring financial stability in the UK and to identify risks posed to the sector.

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