29 November 2017
BRITAIN’S banks passing the Bank of England’s annual stress test is a huge boost for Brexit Britain, according to a top economist.
David Paton, professor of industrial economics at Nottingham University Business School, member of Economists for Free Trade and Labour Leave, has said yesterday’s news UK financial institutions had passed the “worst-case scenario” stress test shows the economy can survive and thrive in Brexit Britain.
For the first time since the test was introduced, it was found banks could cope and even support the UK through a “hard” Brexit scenario without curbing lending or relying on taxpayers’ support, the Bank of England confirmed on Tuesday.
The move, Mr Paton says: “Is reassuring given that the Bank of England assumes that leaving (the EU) with no formal trade deal will cause serious problems for the UK economy.”
The annual health-check has also eased fears that many banks and financial institutions might leave London.
Mr Paton believes there is no sign of any mass move of jobs out of the City and credits the “pre-referendum scare-mongering from the big banks – many of whom like Goldman Sachs funded the Remain campaign”, for these headlines.
He adds: “There are also likely to be movements the other way – the UK will remain a strategically vital finance centre for all sorts of reasons and once we are out of the EU, some companies currently based in continental Europe are likely to want a foothold in the UK and to set up (or expand) operations here.”
To read the Daily Express’s report on David Paton’s comments, click here.