Bank of England says banks are able to support COVID-hit economy

Companies could suffer a cash flow deficit of up to 200 billion pounds, and lenders could suffer credit losses of less than 80 billion pounds, the BoE's Financial Policy Committee said in its Financial Stability Report.

Reuters
LONDON: Britain's banks hold enough capital to keep on lending and absorb the losses that are likely to arise due to the COVID-19 pandemic, the Bank of England said on Thursday.

Companies could suffer a cash flow deficit of up to 200 billion pounds, and lenders could suffer credit losses of less than 80 billion pounds, the BoE's Financial Policy Committee said in its Financial Stability Report.

"It remains the FPC's judgement that banks have the capacity, and it is in the collective interest of the banking system, to continue to support businesses and households through this period," the report said.

Download
The Economic Times Business News App
for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App
for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
READ MORE
ADVERTISEMENT

READ MORE:

LOGIN & CLAIM

50 TIMESPOINTS

More from our Partners

Loading next story
Text Size:AAA
Success
This article has been saved

*

+