An executive director of the Bank of England stressed the need for macro-prudential policy to move beyond the core banking system when he appeared before an audience at the London School of Economics on February 13.

"In partnership with other countries, we must – and are – developing system-wide simulations to examine how the different entities – funds, insurers, dealers – combine to shape how the system responds to stresses," said Alex Brazier.

He noted there are "feedback loops" in the system