Central bank governors and finance officials from the United States, United Kingdom, and European Union are scheduled to participate in a crisis simulation exercise in Washington on Saturday. The war game is designed to test how authorities would respond to the collapse of a globally significant financial institution.

The exercise will include senior officials from the US Federal Reserve, the European Central Bank, and the Bank of England. Bank of England Governor Andrew Bailey is among those expected to participate in the simulation.

The timing of the exercise reflects ongoing concerns about risks to global financial stability. Such simulations allow policymakers to practice coordination and response protocols before actual crises occur.

The exercise appears modeled after scenarios similar to the 2008 collapse of Lehman Brothers, which triggered widespread financial instability. By testing response mechanisms in advance, regulators aim to improve their ability to manage potential future banking crises and maintain financial system stability.