brexit among financial stability risks for uk
Last Updated : GMT 09:07:40
Egypt Today, egypt today
Egypt Today, egypt today
Last Updated : GMT 09:07:40
Egypt Today, egypt today

Brexit among financial stability risks for UK

Egypt Today, egypt today

Egypt Today, egypt today Brexit among financial stability risks for UK

London - Arab Today

The Bank of England (BOE) said Brexit, along with household debt and China’s economy, is among the main risks to UK financial stability, though it’s no longer the top threat.

In an assessment that comes two days before Prime Minister Theresa May triggers the formal exit from the European Union, the BOE said risks will be influenced by the “orderliness of the adjustment to the new relationship.” 

With so much of the bloc’s financial activity centered in London, anything that forces institutions to change operations or services is a potential hazard. While BOE Governor Mark Carney said earlier this year that Brexit is no longer the biggest risk to UK stability, the central bank said on Monday that it still wants to review all lenders’ contingency plans, including a worst-case scenario where their direct access to EU markets is lost.

One potential issue is the disruption of market liquidity and investment banking services to the EU, “which could spill back to the UK economy through trade and financial linkages,” the central bank’s Financial Policy Committee (FPC) said.

The analysis also includes a warning that the new EU relationship could mean greater complexity in banks’ structures —which would make oversight more difficulty — and the FPC is looking at ways to mitigate this.

The FPC statement was published alongside its scenarios for its next stress tests of banks. The scenario includes a 4.7 per cent slump in GDP, a 33 per cent drop in house prices and a 40 per cent plunge in commercial real-estate values. It also incorporates market shocks, including a drop in the pound to just 85 US cents and a 4 per cent BOE interest rate.

The tests cover seven banks, including Barclays, HCBC Holdings and Standard Chartered.

After warning about the pace of consumer credit growth, the BOE is also going to look at specific sources of borrowing. It highlighted the increased use of interest-free transfers on credit cards, which allow consumers to borrow heavily and move debts easily to new credit-card accounts.

Source :Times Of Oman

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

brexit among financial stability risks for uk brexit among financial stability risks for uk



GMT 03:33 2016 Saturday ,24 September

Diesel Black Gold fashion show during Milan Fashion Week

GMT 11:12 2018 Wednesday ,03 October

Osaka saunters into China Open third round

GMT 03:18 2017 Tuesday ,10 January

Home Centre decides to go in for a fresh look

GMT 14:44 2017 Saturday ,06 May

Pharmaceutical industry

GMT 22:32 2016 Wednesday ,24 February

'Deadpool' upends competition at North America box office

GMT 06:44 2017 Friday ,17 March

Bowling, table tennis achievements lauded

GMT 18:11 2017 Saturday ,04 March

Violence claims lives of 18 people across Syria

GMT 11:50 2017 Tuesday ,03 October

Bahrain weather forecast

GMT 12:18 2016 Friday ,30 September

To the importance of Oscar Wilde

GMT 09:53 2012 Friday ,25 May

Amr Yousef heads to Kenya \'Al Montaqem\'

GMT 09:25 2017 Saturday ,07 October

Spain rejects mediation calls as Catalans plan

GMT 22:41 2017 Friday ,02 June

Actress Suzanne Najm Al Din received

GMT 23:52 2017 Tuesday ,03 January

Syrian peace process struggles as rebels

GMT 12:59 2011 Friday ,15 July

Tasting lump of ice with fruit frozen inside

GMT 16:50 2011 Wednesday ,31 August

Justice sues to stop AT&T, t-mobile merger

GMT 21:14 2012 Tuesday ,28 August

Hyundai Veloster turbo SE

GMT 11:50 2011 Friday ,08 July

Russia\'s VTB bank secures record $3.1 bn loan

GMT 07:01 2017 Tuesday ,26 December

Lorde cancels Israel show after pressure

GMT 00:12 2013 Wednesday ,18 September

Damascus clubbers dance on in bid to forget war

GMT 10:55 2011 Tuesday ,15 November

TRA participates in UNESCO General Conference

GMT 18:26 2014 Tuesday ,27 May

Samsung to introduce standalone smart watch

GMT 15:24 2016 Sunday ,07 August

Stranded kayaker rescued after crocodile attack
 
 Egypt Today Facebook,egypt today facebook  Egypt Today Twitter,egypt today twitter Egypt Today Rss,egypt today rss  Egypt Today Youtube,egypt today youtube  Egypt Today Youtube,egypt today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday