Bank of England warns of danger to markets from Greece and China

Financial policy committee's quarterly report also identifies eurozone as source of potential instability in stress-test scenarios for banks

The crisis in Greece, a slowdown in China and the eurozone are the main international risks to the financial system, says the Bank of England, which is concerned that markets could suddenly seize up and a pose a threat tostability.

As the Bank's financial policy committee - established to monitor risks in the system and chaired by bank governor Mark Carney - published its quarterly update on its assessment of the markets, it said that the annual stress tests on banks would focus on such international risks.