The stock market of Thursday, November 29, 2018

British banks would survive a Brexit without agreement?

the British banking system is strong enough to shock a Chaotic Brexits to survive, announced the Bank of England (BoE). Previously, all major banks in the country had the Central bank stress test past.

None of seven major banks tested must strengthen its capital ratios following the test simulating the type of serious economic shocks that could suffer Britain leaving the EU without an agreement.

In addition, the Bank of England has published forecasts for the Effects of a "no deal" commit without a transitional period and concluded that even in this case, the country's banks were able to continue to provide loans to households and businesses.

However, following a difficult Brexits, the BoE sees a mbadive increase Losses for the pound and a slowdown in growth. In the case of a difficult and disorderly exit from Britain's EU, this Gross domestic product (GDP) at the end of 2023 7.75 percent less planned by the central bank in November. Compared to a scenario without a vote on Brexit, it would even be 10.5% lower.

The possible devaluation of the pound For the "messy" scenario, the central bank has set it at 25% and for a disruptive exit at least 15%. In both cases, there would be no agreement with the EU or a transition phase. If, on the other hand, a regulated contract with the EU were to end, the Depreciation of the pound be limited to 5 percent. the Bank of England stress test was better than feared, it is said in the trade, which local banks should benefit.