AFP, London :
Britain’s banking sector is “well placed” to deal with the fallout after the country’s shock vote to leave the European Union, the minister overseeing the financial sector said Wednesday.
Harriett Baldwin, addressing a retail banking conference in central London, told delegates that the industry-ravaged by the global financial crisis-had adequate capital and liquidity to weather Brexit.
World stock markets tumbled in the immediate aftermath of the June 23 referendum but have rebounded strongly over the past two sessions on bargain-hunting that some analysts argue will not last.
“British banks are well placed to manage the uncertainty resulting from last week’s vote,” said Baldwin, whose title is Economic Secretary to the Treasury.
“Since the financial crisis in 2008… both the government and the industry have been working extremely hard to ensure that the UK has a safer and stronger banking sector.”
She added: “UK banks have collectively raised over œ130 billion ($173 billion, 157 billion euros) of capital and now have more than œ600 billion of high quality liquid assets.
“So our institutions have enough capital and liquidity to withstand a period of severe market volatility.”
In reaction to the Brexit vote, the Bank of England pledged Friday that it stood ready to pump more than œ250 billion of funds to aid the smooth functioning of markets.
Britain’s banking sector is “well placed” to deal with the fallout after the country’s shock vote to leave the European Union, the minister overseeing the financial sector said Wednesday.
Harriett Baldwin, addressing a retail banking conference in central London, told delegates that the industry-ravaged by the global financial crisis-had adequate capital and liquidity to weather Brexit.
World stock markets tumbled in the immediate aftermath of the June 23 referendum but have rebounded strongly over the past two sessions on bargain-hunting that some analysts argue will not last.
“British banks are well placed to manage the uncertainty resulting from last week’s vote,” said Baldwin, whose title is Economic Secretary to the Treasury.
“Since the financial crisis in 2008… both the government and the industry have been working extremely hard to ensure that the UK has a safer and stronger banking sector.”
She added: “UK banks have collectively raised over œ130 billion ($173 billion, 157 billion euros) of capital and now have more than œ600 billion of high quality liquid assets.
“So our institutions have enough capital and liquidity to withstand a period of severe market volatility.”
In reaction to the Brexit vote, the Bank of England pledged Friday that it stood ready to pump more than œ250 billion of funds to aid the smooth functioning of markets.
