Economics
Carney Says Brexit Stress Tests for Banks 'Severe But Plausible’
- Says also able to cope with trade tensions, misconduct costs
- Governor comments in speech to Economic Club of New York
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U.K. banks are prepared to withstand more than just Brexit, according to Bank of England Governor Mark Carney.
Stress tests conducted by the central bank show Britain’s financial system would still have more than adequate capital to maintain lending in the face of multiple headwinds, Carney said in a speech in New York on Friday. The bank has been “preparing for the worst” outcome to the U.K.’s negotiations, including improving liquidity, building capital buffers and planning for disruption to cross-border derivative contracts.