BOE’s Woods: Calls on UK banks to build Brexit cash cushions by March
|At the annual City of London dinner in the capital’s financial district late-Thursday, the Bank of England (BOE) Deputy Governor Sam Woods urged the British banks to hold enough cash to withstand any disorderly Brexit hitting financial markets next March.
Key Quotes (via Reuters):
“Just in case things go badly we have been working with firms to ensure they have in place liquidity sufficient to accommodate a severe dislocation in financial markets.”
“We all need to be ready for a range of outcomes.”
“We encourage all firms to opt into the regime because it will provide certainty until March 2022, independent of the existence and duration of any wider implementation period.”
“This is a straightforward, common sense way of lowering the risk of disruption to the City of London.”
“The EU should mirror these efforts to ensure that financial contracts such as insurance policies and derivatives don’t face disruption, whatever happens next March.”
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