UK banks ready for no-deal Brexit

British banks hold enough capital to cope with a simultaneous disorderly no-deal Brexit and global trade war, the Bank of England said on Thursday as part of its half-yearly assessment of financial risks, Reuters has reported.

In an assessment that raised little in the way of new concerns, the BoE confirmed it would intensify its focus on risks such as illiquid investment funds, liquidity shocks, crypto-currencies and environmental dangers. 

“The perceived likelihood of a no-deal Brexit has increased since the start of the year,” the BoE’s Financial Policy Committee said. 

“The UK banking system remains strong enough to continue to lend through the wide range of UK economic and financial shocks that could be associated with Brexit,” it added. 

Since the BoE’s last Financial Stability Report in 2018, Brexit has been delayed from March 29 to Oct. 31. 

Prime Minister Theresa May has repeatedly failed to get parliament’s backing for her plan to ensure a smooth exit from the European Union, and the two main contenders to succeed her have said Britain may need to leave without a deal. 

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Gary Cartwright

Gary Cartwright

Gary Cartwright is publishing editor of EU Today.

An experienced journalist and published author, he specialises in environment, energy, and defence.

He also has more than 10 years experience of working as a staff member in the EU institutions, working with political groups and MEPs in various policy areas.

Gary's latest book WANTED MAN: THE STORY OF MUKHTAR ABLYAZOV: A Manual for Criminals on How to Avoid Punishment in the EU is currently available from Amazon

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