WORST TO COME FOR BANKS IN BRITAIN, SAYS BOE DEPUTY

Banks in Britain have been shielded from the worst effects of the COVID-19 pandemic by government relief measures and the toughest time has yet to come, Bank of England Deputy Governor Sam Woods, shown, said on Friday. Government relief schemes have cushioned banks against fallout from the crisis, but these will be wound down in coming months. “We feel good about what’s happened so far but in a way the tougher bit is coming,” Woods told a London School of Economics webinar. “The government has pushed out a lot of the stress in time, but some will still come through.” The big British banks collectively hold 260 billion pounds (US$356.49 billion) of equity capital — a “fairly decent number” — but it will be under more pressure this year as some corporate loans turn sour, Woods said.