• Bank of England - UK banks more likely to curb lending if disorderly Brexit coincides with severe global recession and misconduct fines

Market news

28 November 2017

Bank of England - UK banks more likely to curb lending if disorderly Brexit coincides with severe global recession and misconduct fines

  • RBS and Barclays pass 2017 stress test with current capital, would have failed on end-2016 capital alone

  • No banks need to raise extra capital due to 2017 stress test, for first time since tests started in 2014

  • FPC will reconsider adequacy of countercyclical buffer in h1 2018

  • Timely agreement on brexit implementation period would reduce risks to financial stability

  • UK vulnerable to reduced foreign investor appetite for UK assets, sharp falls could drive sterling lower

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