The British banks underwent an annual stress test, but the risks of Brexit remain
The results of the annual stress test showed that no British bank needs capital increase for the first time since 2014. But the Bank of England warned of the painful consequences in the absence of an agreement on the withdrawal of Britain from the EU and said that the current deficit of the country's budget represents a significant risk.
Large commercial banks can cope with the "unorganized" exit of Britain from the EU without restricting the issuance of loans and sanitation at the expense of taxpayers, the Bank of England reported on Tuesday. Nevertheless, the banks of Barclays (LON: BARC) and RBS managed to pass the stress tests with difficulty, with the help of the capital received this year, rather than in 2016, as is usually required for satisfactory evaluation. All other leading British creditors - HSBC, Lloyds Banking Group (LON: LLOY), Santander UK, Standard Chartered (LON: STAN) and Nationwide Building Society - underwent stress tests.
The head of the regulator, Mark Carney, the day before summarized that the banking system is able to continue to support the real economy, even in the unlikely event that the UK exit from the EU will be unorganized. However, according to him, reaching an agreement before the actual withdrawal of the country from the EU in March 2019 is beneficial to both sides, despite the fact that so far progress has been slow.
"The unorganized exit of the UK from the EU will entail economic consequences for households and companies, the markets will be lost until new ones are found, and in this regard, painful consequences will arise," Carney said.
According to him, it is not known whether the banking system will be sustainable if such a Brexit scenario coincides with the recession in global markets and the increase in penalties for disciplinary violations of banks.
British banks have already tripled the capital, which is a safety cushion in the event of potential losses after the beginning of the global financial crisis of 2007-2009, which plunged the country into recession.