Europe bulletin: BoE targets non-bank risks, Arctic tensions rise, UK SFO probes bribery

Europe ends the day grappling with financial stability and rising geopolitical risk.

The Bank of England says it is intensifying efforts to curb vulnerabilities in the non-bank sector after recent market scares, flagging leverage and liquidity mismatches as key threats.

In the Arctic, Denmark plans to expand its military posture in Greenland as strategic competition accelerates.

UK investigators have opened a bribery probe into former managers of collapsed Home REIT, while Russia claims Ukrainian drones hit infrastructure tied to Kazakh oil exports, stoking supply concerns.

BoE targets non-bank risks

Bank of England Deputy Governor Dave Ramsden said the central bank is stepping up work to tackle risks from non-bank financial institutions after recent market scares exposed vulnerabilities.

Speaking on Wednesday, he highlighted concerns around leverage, liquidity mismatches and the speed at which stress can spread through hedge funds, money market funds and other non-banks.

Ramsden said the BoE is working with global regulators on reforms and stands ready to use its tools to limit systemic risk, but warned progress will take time.

The goal, he stressed, is to safeguard financial stability without choking off the useful roles non-banks play.

Denmark boosts Greenland defences

Denmark plans to step up its military presence in Greenland as security competition intensifies in the Arctic, the country’s defence minister said on Wednesday.

Copenhagen aims to strengthen surveillance, improve operational capabilities and deepen cooperation with local authorities, reflecting growing concern over strategic interest from major powers in the region.

The minister framed the move as both a contribution to NATO’s northern defences and a response to climate-driven changes that are opening new sea routes and resources.

While details are still being worked out, Denmark signalled that Greenland will play a bigger role in its long-term defence planning.

UK SFO probes Home REIT bribery

Britain’s Serious Fraud Office has opened a bribery investigation into the former external management of collapsed social housing investor Home REIT, widening the legal fallout from the scandal-hit fund.

The probe will examine suspected offences, including bribery and corruption, linked to property deals that were supposed to house vulnerable people, including the homeless.

The SFO said it is reviewing transactions and payments involving ex-management and related parties, and has urged whistleblowers and witnesses to come forward.

Home REIT has already faced lawsuits and regulatory scrutiny after revelations about rental income, tenant quality and the true condition of its portfolio.

Russia claims Ukrainian drones hit Kazakh oil terminal

Russia blamed Ukrainian drones for an attack on an oil tanker near the Caspian Pipeline Consortium terminal on Tuesday, marking another escalation in strikes on energy infrastructure.

The vessel was reportedly damaged but remained afloat, with no casualties.

Moscow said the attack targeted the terminal that handles Kazakh oil exports, raising concerns about broader disruption to global supply routes.

Ukraine has not commented on the incident.

The strike follows a pattern of drone attacks on Russian ports and energy facilities, as Kyiv seeks to undermine Moscow’s war financing and export revenues.

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