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Banks of England says banks are prepared for worst case scenario

11 July 2019

The Bank of England's Financy Stability Report says UK banks are ready for a worst-case no deal Brexit scenario.  UK banks have been required to withold capital as a measure to allow continued service to households and businesses in case the economy shrinks, unemployment rises and property prices fall. The stress tests take into account such factors as a perceived increased likelihood in a no-deal Brexit and potential impact of trade wars.  However, it warns that financial stability is not the same as market stability, and the report cites the a decrease of inward foreign investment for commercial real estate in Q2019 as evidence of the impact of no-deal Brexit.  Read the full report here >