Moody's Upgrades Outlook for British Banking Industry
From negative to stable
Credit ratings agency Moody's has upgraded its outlook for the UK banking industry to stable from negative.
It said the change reflected the country's increasingly stable economic outlook, despite low growth prospects.
"Unemployment has not increased as much as in previous recessions, thereby contributing to a stabilisation in banks' asset quality," the statement said.
Moody's expects profitability to recover from current low levels.
Other reasons given for the more positive outlook were the continued improvement in the banks' capital as a result of new, stricter regulation.
"Overall, we believe that UK banks are sufficiently well capitalised to absorb expected losses from both our central and adverse stress scenarios," Moody's said.
Hide Comments (0)
Editor's Note: As of February 29, 2024, commenting privileges on reason.com posts are limited to Reason Plus subscribers. Past commenters are grandfathered in for a temporary period. Subscribe here to preserve your ability to comment. Your Reason Plus subscription also gives you an ad-free version of reason.com, along with full access to the digital edition and archives of Reason magazine. We request that comments be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of reason.com or Reason Foundation. We reserve the right to delete any comment and ban commenters for any reason at any time. Comments may only be edited within 5 minutes of posting. Report abuses.
Please
to post commentsMute this user?
Ban this user?
Un-ban this user?
Nuke this user?
Un-nuke this user?
Flag this comment?
Un-flag this comment?