Tuesday, Dec 22, 2009

S&P says "We no longer consider the UK to rank among the most stable and low-risk banking systems"

Telegraph: Britain's banks to hold back recovery, warns S&P

Standard & Poor's on Monday lowered the collective rating of Britain's banks in anticipation of "high credit losses". By slashing the "banking industry country risk assessment" (BICRA) from group two to group three, the UK's financial system is now considered less secure than those of Italy and Belgium, and on a par with Chile, Portugal and Austria. It added that UK banks had no option but to reduce their debt, which "will lead to an elevated rate of loan losses for the next two years [and] will weigh on the growth prospects for the UK relative to many other large mature market economies" The agency is particularly concerned about debt levels in "households and in the property and construction related sector". It expects banks to rack up loan losses of between £150bn and £250bn to 2011"

Posted by cat and canary @ 02:18 PM (1034 views)
Add Comment
Report Article

1 Comment

1. paul said...

"households and in the property and construction related sector"

Ah. That'll be the properties they've reposessed and held on to 'until the market picks up again'.

Tuesday, December 22, 2009 05:57PM Report Comment

Add comment

  • If you do not have an admin password leave the password field blank.
  • If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
  • Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
  • Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
  • Please adhere to the Guidelines
Admin Password
Email Address

Main Blog | Archive | Add Article | Blog Policies