U.K. banks are strong enough to withstand a Greek exit from the euro zone, a Bank of England policy maker was quoted as saying Monday.
Michael Cohrs, a member of the central bank's Financial Policy Committee, said in an interview with the Guardian newspaper that lenders should nevertheless keep building up capital.
"British banks are ready for Greece," Cohrs was quoted as saying. "They have thought about their direct exposures to Greece and they have marked them to appropriate levels, their liquidity is strong and they have enough capital to withstand shocks from Greece.
"If it goes further it's not clear, and that is why we have been encouraging them to raise more capital because nobody knows where it will stop or it won't stop."
The FPC is a new body charged with safeguarding the stability of the financial system.
-London bureau, Dow Jones Newswires; +44 (0)20 78 42 9330; [email protected]