Moody's: Negative outlook on UK banking system reflects uncertainty post-Brexit vote

The US ratings agency, Moody’s Investors Service, published another note on the Brexit impact on the UK and its banking system.

Key Headlines:

Increased uncertainty of UK's future trade relationship with EU will lead to reduced confidence, lower investment, consumer spending in UK

Expect UK banks to see asset quality worsen

UK banks operating environment to weaken

Bank profitability to come under pressure

Expects BOE to continue to support the banking system through on-going provision of contingent liquidity support