UK Banks Resilient To Disorderly Brexit: BoE

UK banks are resilient to a worst-case disorderly Brexit, the Financial Policy Committee of the Bank of England said Thursday.

The perceived likelihood of a no-deal Brexit has increased since the start of 2019. UK banks are strong enough to continue lending through a range of economic and financial shocks, the Financial Stability Report noted.

Further, the twice-yearly report said most risks to financial stability from disruption to cross-border financial services in a no-deal Brexit have been mitigated.

However, the FPC cautioned that significant volatility and asset price changes in markets are to be expected in case of disorderly Brexit.

Rising trade tensions have raised risks to the global outlook. Nonetheless, UK banking system remains resilient to those global risks, the FPC added.

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