BoE says banks can cope with Brexit and pandemic
But central bank warns EU actions are risking some disruption as transition period ends
The Bank of England says UK banks are sufficiently resilient to withstand a major economic downturn, even as the end of the Brexit transition and rising insolvencies due to Covid-19 loom.
In its latest financial stability report, published today (December 11), the BoE estimates banks have enough capital to absorb around £200 billion ($260 billion) of losses, far more than would be expected under its central forecast for the economy.
Based on a ‘reverse stress test’, the BoE estimates a shock
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