BoE: UK banks still face risks

| June 25, 2010 | 0 Comments

The Bank of England’s semi-annual Financial Stability Report, which has been published today, warned that UK banks are still at risk as a result of the euro zone debt crisis.

While the report praised the €750 billion rescue package, agreed by the European Union and the International Monetary Fund (IMF), it said ongoing “market pressures” could affect Britain’s financial system.

The report also said there was a risk to Britain’s financial institutions when dealing with “European banks that have direct exposures to countries facing increased sovereign risks”.

The bank’s report comes at the same time as US Treasury Secretary, Timothy Geithner, said Europe must focus on growth as well as cutting spending to bring their deficits down.

In an interview with the BBC, Mr Geithner said global leaders must concentrate on the “paramount” challenges of growth and confidence.

Comments from both sides of the Atlantic come as global leaders of G8 and G20 nations arrive for two separate summits in Canada this weekend.

Tags: , , , Timothy Geithner,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 2284 times, 8 so far today