Fitch says UK banking system “very strong’

Fitch Ratings has called the UK banking system “very strong” in its most recent Bank Systemic Risk report.

The report, issued today, says the Northern Rock episode was an isolated event and that the system retains its “very strong” rating because no other large bank in the UK has had its individual rating downgraded.

Fitch does suggest, however, that the weakening property sector will likely exert moderate pressure on banks in both the UK and in Spain, leaving those active in the sector vulnerable to further write-downs and weaker earnings outlooks.