After UK pension fund near-collapse, Bank of England urges "urgent" action.

By The Exchange Team

On Tuesday, the Bank of England sought "prompt worldwide action" from authorities on non-bank financial organisations.

The central bank's long-term bond market intervention saved several pension funds from collapse.

It Came After a series of significant changes in U.K. government debt interest rates highlighted vulnerabilities in liability-driven investment (LDI) funds

The Bank stated in its Tuesday financial stability report that “the stress would have considerably harmed individuals' and companies' capacity to access credit” had it not acted.

Its interim emergency bond-buying operation gave LDI funds time to strengthen their liquidity and ensure financial stability.

“There is a need for immediate international action to reduce risks in non-bank finance,” the Bank said.

The central bank will start a "exploratory scenario exercise" on non-bank financial firms to better identify and minimise risks.