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		</div><p>The Bank of England has warned over a potential credit crunch and urged lenders to bolster their balance sheets ahead of the EU referendum.</p>
<p>The UK’s Bank&#8217;s Financial Policy Committee (FPC) said the UK banking sector was &#8220;resilient&#8221;, but said heightened uncertainty triggered by Britain&#8217;s forthcoming referendum on EU membership posed a risk to financial stability.</p>
<p>It said the value of the pound &#8211; which plummeted earlier this year amid Brexit fears &#8211; could weaken even further and impact the cost and availability of finance for UK borrowers.</p>
<p>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.</p>
<p>In the minutes from its latest policy meeting, the FPC said: &#8220;The committee assesses the risks around the referendum to be the most significant near-term domestic risks to financial stability.&#8221;</p>
<p>The FPC said: &#8220;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.&#8221;</p>
<p>It added: &#8220;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.&#8221;</p>
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