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14.04.2017 - 19: 02

British banks will reduce the issuance of consumer loans

Most British banks in the coming months will reduce the issuance of consumer loans due Brexit, it will happen the first time since 2008 years, the report said the Bank of England (Bank of England, BoE) on the state of the credit market.

Credit organizations are alarmed reduction in the purchasing power of the British, a decrease in the level of consumption in 2017 year and the weakening of the pound, according to the materials of the BoE.

Banks also fear that companies will reduce their investment in the business in the face of uncertainty, and this has a negative impact on lending to the corporate sector.

While the Bank of England does not expect deterioration of the situation in the country - the forecast for GDP growth in the year 2017 improved to two percent from the 1,4 percent. In the 2018, the British economy will grow by 1,6 percent, 2019 year - 1,7 percent, says the regulator.

28 March, Prime Minister Tereza Mey signed a letter notifying the authorities of the European Union on the formal launch of the country's exit from the association procedure.

According to the study Central Banking Publications and HSBC, the world's central banks are increasingly choosing to pound pan-European currency.

The decision on the withdrawal of Britain from the EU was adopted by referendum in June 23 2016 years. Brexit supported by more than half of the voters. The law allows the government led by Tereze Mey to start the procedure of the UK release of the EU, it was approved by Parliament in March 14 and two days later was signed Korolevoy Elizavetoy II.

A source: Slow

Tags: United Kingdom, banks, economy, loan, Brexit