U.K. Lenders in Spotlight as More Property Funds Frozen: ChartBy and
U.K. banks’ exposure to the country’s commercial real estate sector is more than 65 billion pounds ($84 billion), almost a third of the combined market value of the biggest lenders. While they may be forced to take losses after property funds froze withdrawals, it’s manageable, according to Goldman Sachs Group Inc. Bank of England stress tests showed a 30 percent drop in real-estate asset values would reduce banks’ tangible equity no more than 3 percent, Goldman Sachs said.
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