London — Banks in Britain are trying to prepare businesses for a potential cash crunch after Brexit, whether or not a deal agreed by the UK and Brussels is approved by parliament in December. Banks fear Britain’s departure from the EU could cause a spike in bad loans with corporate clients, if it leads to delays in cross-border shipments and payments or big swings in sterling. To protect companies against these risks some banks are extending credit early to companies and selling insurance against volatility in sterling. State-controlled Royal Bank of Scotland (RBS) trebled its “growth fund” for small businesses last month from £1bn to £3bn, saying it had set aside extra cash to help customers get through Brexit. It said it might need to top up the pot again. “To a large extent it depends on the type of Brexit we get,” said Mike Slevin, head of capital management at the bank. It has identified nearly 2,000 at-risk companies across several sectors it believes are exposed to a Brexit f...

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