The Bank of England is testing lenders’ resilience to potential U.S. dollar shocks, as concerns grow over Trump administration policies impacting global financial stability. European supervisors are also demanding assessments of dollar funding plans and dependencies, highlighting vulnerabilities in the global financial system. With global banks facing significant dollar exposure, fears of funding shocks are rising amid uncertainties surrounding Fed support. Regulators and banks are reexamining their reliance on Washington, as the U.S. dollar remains a critical currency for global trade and capital flows. The results of stress tests and regulatory actions are awaited to address these concerns.

Read more at Yahoo Finance: Exclusive-Bank of England scrutinizes lenders for dollar risk amid Trump worries, sources say