11th Mar 2019 10:28
LONDON (Alliance News) - The Bank of England has instructed some UK lenders to increase liquid assets in case the UK crashes out of the EU without a deal later this month, the Financial Times reported on Sunday.
Some lenders now need to have enough liquid assets to withstand a severe stress of 100 days rather than the normal 30, under rules brought in late last year by the BoE's Prudential Regulation Authority, the FT said citing people familiar with the matter.
The FT reported a BoE spokesperson said: "We have for several months been holding firms to increased liquidity requirements in order to mitigate Brexit risks."
Individual banks' requirements remain confidential, said the FT, but "industry insiders" said Barclays PLC and Royal Bank of Scotland PLC were among those facing the greatest PRA requirements. Consumer-focused banks, such as Lloyds Banking Group and Nationwide, have been given less stringent requirements.
https://www.ft.com/content/7450737a-4356-11e9-b168-96a37d002cd3?emailId=5c857fa26c35370004093740&segmentId=ce31c7f5-c2de-09db-abdc-f2fd624da608
Shares in RBS were up 0.4% at 258.00 pence on Monday, while Barclays was up 0.6% at 159.66p and Lloyds Banking 0.6% higher at 62.24p.
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