British banks, companies set millions aside to weather Brexit

184

Bank of England Deputy Governor Sam Woods said banks in Britain must hold enough cash to withstand any disorderly Brexit hitting financial markets.

Royal Bank of Scotland has set an extra $128 million aside to account for possible bad loans as a result of Brexit uncertainty, in the first concrete sign this is clouding the outlook of a big British bank.

The provision means RBS is concerned that its customers might become less able to pay their debts when Britain leaves the European Union in five months’ time.

While HSBC put aside $245 million at its half-year results to account for greater economic uncertainty, RBS is the first big UK bank to link the move to Brexit.

RBS’s rival Lloyds said it was confident that negotiations between London and Brussels could still deliver a withdrawal agreement, which remains elusive even after years of tense talks.

Bank of England Deputy Governor Sam Woods said on Thursday banks in Britain must hold enough cash to withstand any disorderly Brexit hitting financial markets.

Britain is legislating to allow banks and insurers in the EU to continue serving UK customers after Brexit, even if Britain crashes out of the bloc with no transition deal.

Heathrow

Britain’s Heathrow has raised about $2.5 billion from global investors to boost financial resilience ahead of Brexit and lay the groundwork for a privately funded expansion of Europe’s busiest airport.

“With the outcome of Brexit negotiations unknown, strong businesses like Heathrow must stand up to support Britain’s economy. We will expand Heathrow to boost Britain’s global trade for decades to come,” Heathrow Chief Executive John Holland-Kaye said on Friday.

Heathrow – which is owned by Ferrovial, Qatar Investment Authority and China Investment Corporation among others – said it continues to monitor Brexit progress and emphasised the importance of Britain agreeing a deal with the EU that “secures continued liberal access to the European aviation market.”

Source: Reuters
SHARE