EU countries not fully ready for no-deal shock, says BoE
The central bank to offer more euros to banks in Britain to avoid a cash crunch
London — The Bank of England (BoE) said it would offer more euros to banks in Britain to avoid any cash crunch after Brexit and warned that other EU countries are not fully ready for the possible no-deal hit to the financial system. The BoE said most financial stability risks in Britain from a no-deal Brexit had been mitigated and UK banks had enough liquidity to go for months without needing to tap markets. But as a precaution it would launch a new weekly auction of euros from next week to ensure that banks based in Britain can borrow in Europe’s single currency, following on from a similar announcement last week about weekly sterling operations. The European Central Bank (ECB) confirmed that the Eurosystem of central banks would stand ready to lend pound sterling to euro area banks, if needed. EU banks hold 15% of UK bank debt and 10% of UK government bonds. With Brexit due to happen on March 29, British Prime Minister Theresa May is holding out for further concessions from Brusse...
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