BULLET: BOE FPC: UK Banking System Strong Enough To Brexit,..>

BOE FPC: UK Banking System Strong Enough To Withstand Brexit, Recessions 

- FPC: UK Banks Hit Harder By 2018 Stress Test Than Brexit Scenarios  

- FPC Maintains Countercyclical Capital Buffer at 1.0% 

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The Banking system would be more severely impacted by a scenario 

similar to that of the Bank's 2018 Stress Test, consistent with credit 

and banking losses of stg170bn, than any Brexit scenario, according to 

the FPC, given the global nature of the associated shocks. Still, all 

major UK banks were assessed to have sufficient liquity to withstand 

major market disruption. The FPC left the countercyclical capital 

buffer (CCyB) unchanged at 1.0% but maintained it was ready to move it 

any direction as the risk environment evolved. It also added that 

derivatives contracts cleared with UK central counterparties would need 

to be transferred out by March 2019, implying a process that would need 

to be initiated from as early as next month.