EU fi­nance puts Bri­tish banks at risk

The Pak Banker - - Front Page -

LONDON: The Bank of Eng­land has warned that the up­com­ing fi­nan­cial prob­lems in Europe put Bri­tish banks at high risk, ac­cord­ing to the Fi­nan­cial Sta­bil­ity Re­port.

The lat­est half-yearly Fi­nan­cial Sta­bil­ity Re­port of the Bank of Eng­land, it is shown that new tests on the strength of Euro­pean len­ders and a clear so­lu­tion to the fi­nan­cial prob­lem that af­fects EU fi­nance are needed. It also said that the "over­heat­ing" hap­pen­ing in pro­gress­ing mar­kets in­clud­ing China and In­dia might af­fect UK len­ders neg­a­tively.

Fol­low­ing the Euro­pean Union lead­ers agree­ment to cre­ate a per­ma­nent mech­a­nism -eu­ro­zone sta­bil­ity mech­a­nism - - the Bank an­nounced that any mem­ber state whose large pub­lic deficits threaten the 16na­tion eu­ro­zone should be bailed out.

Over­heat­ing in pro­gress­ing mar­kets, such as In­dia and In­done­sia, puts stock mar­kets in those coun­tries at his­tor­i­cally very high lev­els in­creases prop­erty prices in China. - PB News

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