BULLET: BOE FPC: UK Fin System Strong Enough To Withstand....>

BOE FPC: UK Fin System Strong Enough To Withstand Brexit/Trade Tensions 

- FPC: Probability of a no-deal Brextit increased since year-start  

- FPC maintains the countercyclical capital buffer rate of 1%

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The BOE FPC's latest stability report states that the probability 

of a no-deal Brexit increased and further notes that the UK financial 

system is prepared for a worst-case disorderly withdrawal. All 

major UK banks were assessed to have sufficient liquidity 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. Risk to financial 

stability occuring from disruptions to cross-border financial 

services in a no-deal secenario have been dealt with according to the 

FPC. The report highlights increased global risks including the current 

US China trade tensions. However, according to the resutls of the stress 

test, UK banks are covered for any spillover effects of trade tensions.