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

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.