UK banks vulnerable to economic shock
Adam Pike, News Editor
15 Feb 2016, 3:46 p.m.
Britain’s largest banks are vulnerable should we enter another financial crisis. According to, Sir John Vickers, who led the inquiry into the 2008 banking crisis, UK banks do not have the necessary buffers in place to survive a liquidity crisis.
Vickers, a former Bank of England economist, believes the City of London have diluted the recommendations put forward by the Independent Commission on Banking.
The warning comes as Chinese authorities attempt to stabilize their equity markets as fears of a 2008 banking crisis resurface.
Fears are also rising that low inflation and waning confidence in European Central Banks ability to generate growth could tip the Eurozone back into recession.
Banks shares have been hit hard since the start of 2016. HSBC’s share price is now trading at 2009 levels, whilst Standard Charter share price is at 25 year low. Deutsche Bank’s share price has also come under pressure despite their Chief Executive declaring the bank is rock solid and announcing a £3.7 bn buy back on its debt.