Executives interviewed by the Bank of England (BoE) were more optimistic about the buoyancy of the system than at any other time since 2008, the paper said. However, they did highlight dangers such as rising house prices and geopolitical crises such as the ongoing political instability in Ukraine.

The report said the confidence peak comes at a time of record highs for equity values, which have triggered some experts in the City to warn of “complacency” among respondents.

UBS senior independent economic adviser George Magnus said the “unholy trinity” of rising share prices, very low bond yields and low volatility were signals that “something is not quite right” in financial markets, the report said.

“My number one risk would be that valuations and market prices do look very vulnerable to a correction that will have consequences,” he said, describing the BoE survey responses as “a bit complacent”.

The BoE data came from its twice-annual Systemic Risk Survey which polled 72 executives responsible for risk management at banks, asset managers, hedge funds and insurers in the City of London.