BOE's Cohrs: UK Banks Can Withstand Greek Exit From Euro Zone
May 21 2012 - 4:48AM
Dow Jones News
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.
Full
story:http://www.guardian.co.uk/business/2012/may/20/banks-ready-for-greece-eurozone-exit?INTCMP=SRCH
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