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UK banks can cope with no-deal Brexit and trade war - BoE

July 11, 2019 / Investing.Com

British banks hold enough capital to cope with a no-deal Brexit and a global trade war simultaneously, the Bank of England said on Thursday, although a disruptive Brexit would still cause major turbulence for financial markets and the economy. Bank of England Governor Mark Carney also flagged ongoing concerns about illiquid investment funds, liquidity shocks, crypto-currencies and environmental dangers at a half-yearly update on the risks facing Britain's banking system. Carney said while banks were well prepared for Brexit, this did not mean the economy would be unscathed if Britain left the European Union on Oct. 31 without a transition deal, something both contenders to be the next prime minister say is possible. "Financial stability is not the same as market stability," Carney told a news conference. "In a disorderly Brexit, a range of UK asset prices would be expected to adjust sharply, tightening financial conditions for UK households and businesses."