UK bank bailout warning from thinktank

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UK bank bailout warning from thinktank

UK bank bailout warning from thinktank
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British banks may need another state bailout next year and their borrowing requirements could hit almost 29 billion euros a month.

That is the conclusion of the independent New Economics Foundation thinktank based on Bank of England data.

The thinktank economists said the UK banks may have problems repaying billions borrowed from the Bank of England

However, Britain’s finance minister George Osborne dismissed that scenario.

The Chancellor of the Exchequer said he was not expecting any British bank to need any further government support.

“I am certainly not expecting and I have no indication at all that any British bank needs any further support,” Osborne told Sky News.

“Those decisions were taken and the banking system in Britain is much more stable than for example the banking system in Ireland,” he added, referring to Ireland’s possible 50 billion euro bill to shore up the Irish banks.

In response to the report, the British Bankers
Association (BBA) said the country’s banks were well placed to deal with any financial problems that may arise in the future.

“UK banks have already put in the work to rebuild their businesses and exceed the international standards for capital and liquidity,” the BBA said.