Bank of England holds Brexit talks with major banks

Mark-Carney-with-bank-note-in-background-700.jpgBank bosses were called into the Bank of England yesterday to talk about Brexit fallout on the UK’s financial system, according to the Financial Times.

The “fireside chat” aimed to calm big banks’ concerns about liquidity, and called on them to keep lending to avoid a 2008-style credit crunch.

The chief executives of HSBC, Barclays, Lloyds Banking Group, Royal Bank of Scotland, Standard Chartered, Nationwide and TSB were among the banks present.

The group, including Bank of England governor Mark Carney, debated the way markets reacted to Brexit, how the financial system had weathered asset price volatility and the wider economic impact of the Leave vote.

At the meeting, Bank of England officials said they would be closely examining any possible problem areas, such as housing.

The Bank said prime London residential property was of particular interest.

A source close to the talks says the Bank would hold more informal meetings to keep tabs on the implications of the UK voting to leave the European Union.

In February 2015 the Bank of England said it wanted to move away from the “fireside chat” model in favour of a more transparent approach.

But the FT says the Bank wants to avoid any individual bank being singled out for attention so intends to meet with all of them regularly.