UK banks ready to withstand hit of up to £200bn in face of economic risks | Business News

Britain’s big banks are ready to withstand a hit of up to £200bn as the economy faces risks, including rising unemployment and the end of the Brexit transition period, the Bank of England says.

Financial institutions can cope with a far worse shock than the one they are currently going through and still continue to lend to households and businesses, said the central bank.

It said banks had built up substantial buffers since the financial crisis more than a decade ago, which are helping them weather the economic problems triggered by the coronavirus pandemic.

The central bank’s Financial Policy Committee that ahead of a threatened no-deal Brexit most risks to the UK’s financial stability have been mitigated, but “some disruption to financial services could arise”.

Sky News