Advertisements
15.1 C
London
Friday, July 10, 2020

Bank of England issues warning to lenders of ‘risks around the referendum’

Must read

FIFA referees’ chief Pierluigi Collina calls for more use of pitchside monitor

Referees’ chief Pierluigi Collina has underlined the importance of using pitchside monitors and warned video assistant referees must not to show the “wrong kind...

Britain heads for sharpest economic slump of major economies in Covid-19 storm

Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody’s has warned, and ramp up national debt...

Johnny Depp tells High Court no other woman has accused him of violence

Johnny Depp has told the High Court he has never before been accused of hitting a woman, as he continued to give evidence in...

Comet provides spectacular show as it streaks past Earth

A newly discovered comet is streaking past Earth, providing a stunning night-time show after buzzing the sun and expanding its tail. Comet Neowise swept within...

The Bank of England has warned over a potential credit crunch and urged lenders to bolster their balance sheets ahead of the EU referendum.

The UK’s Bank’s Financial Policy Committee (FPC) said the UK banking sector was “resilient”, but said heightened uncertainty triggered by Britain’s forthcoming referendum on EU membership posed a risk to financial stability.

It said the value of the pound – which plummeted earlier this year amid Brexit fears – could weaken even further and impact the cost and availability of finance for UK borrowers.

The concerns come amid a backdrop of tough trading for the banking sector, which has seen its profits come under pressure as interest rates have remained stubbornly low across major economies.

In the minutes from its latest policy meeting, the FPC said: “The committee assesses the risks around the referendum to be the most significant near-term domestic risks to financial stability.”

The FPC said: “Looking ahead, heightened and prolonged uncertainty has the potential to increase the risk premia investors require on a wider range of UK assets, which could lead to a further depreciation of sterling and affect the cost and availability of financing for a broad range of UK borrowers.”

It added: “In addition, the impact of a decision of the United Kingdom to withdraw from the European Union could spill over to the euro area, driving up risk premia and further diminishing the prospects for growth there.”

Advertisements

- Advertisement -

More articles

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Latest article

FIFA referees’ chief Pierluigi Collina calls for more use of pitchside monitor

Referees’ chief Pierluigi Collina has underlined the importance of using pitchside monitors and warned video assistant referees must not to show the “wrong kind...

Britain heads for sharpest economic slump of major economies in Covid-19 storm

Britain will suffer the sharpest peak-to-trough economic slump of any major economy this year, rating agency Moody’s has warned, and ramp up national debt...

Johnny Depp tells High Court no other woman has accused him of violence

Johnny Depp has told the High Court he has never before been accused of hitting a woman, as he continued to give evidence in...

Comet provides spectacular show as it streaks past Earth

A newly discovered comet is streaking past Earth, providing a stunning night-time show after buzzing the sun and expanding its tail. Comet Neowise swept within...

Hagia Sophia formally restored as mosque by Turkish president

Turkish President Recep Tayyip Erdogan has formally reconverted Istanbul’s sixth-century Hagia Sophia into a mosque. He declared it open to Muslim worship on Friday, hours...
%d bloggers like this: