The Bank of England (BoE) has identified that non-bank financial firms present broader risks during periods of crisis. According to the BoE, these non-banks often struggle to predict the behavior of their counterparties, investors, and markets in stressful conditions. In a recent stress test, the BoE noted that while the UK's major clearing houses are resilient under severe market strains, they do exhibit vulnerabilities in highly concentrated positions. Additionally, there are indications that Britain's banks may be increasing their reserves to cover potential bad loans, a move attributed to uncertainties surrounding the country's labor market data.