Mark Carney had to stretch the rules a little, but even in a worse-than-worst-case Brexit scenario, none of the U.K.’s seven biggest banks will die. But two of them will come close.
Barclays and Royal Bank of Scotland , which both struggled in last year’s test, were only given a pass this time on the basis of capital they have raised during this year. Barclays only just squeaked home even with that allowance.
Of course, it won’t be all buttercups and roses, but they’ll get by. The banks, that is. Which is exactly what the Brexit supporters were voting for, of course.
“In the event of a sharp disorderly Brexit, there will be an economic impact on households, on businesses. There will be lost markets before new markets are found, and there will be some pain associated with that,” Carney said.
Let’s talk a little about that economic impact on households. The cost of Making Britain Great Again begins with a pretty steep down payment.
British and EU negotiators have reached a deal over the so-called Brexit bill, opening the door to a potential breakthrough in the talks this December, the Telegraph has learned.
The Telegraph understands that the final figure, which is deliberately being left open to interpretation, will be between €45bn and €55bn, depending on how each side calculates the output from an agreed methodology.
Barclays at the Back of the Class in U.K. Stress Tests [WSJ]
No more pain for UK banks in 2017 BoE tests, but Brexit risks ahead [Reuters]
Exclusive: Britain and the EU agree Brexit divorce bill [Telegraph]