US ratings agency out with a note on UK banks post-Brexit 28 July
– in downside scenario asset quality of UK banks deteriorates significantly,
– ratio of NPLs rises ti 4.9% in 2018 from 2% in 2015
In his recent testimony to the UK parliamentary committee Carney urged banks to lend the money they’ve been gorging on in cheap conditions. If Moody’s are right then there’s going to be no rush to lend even if rates were cut next week.
Moody’s say severe recession would deplete capital of UK banks but from a higher starting point
