, Columnist
Britain's Struggling Banks Show the U.K.'s Economic Weakness
HSBC, Barclays, Lloyds and NatWest have strong capital buffers but their exposure to U.K. consumers and Brexit is taking a heavy toll.
Shoppers to the rescue.
Photographer: Jeff J Mitchell/Getty Images EuropeThis article is for subscribers only.
The U.K.’s biggest banks have come a long way since the financial crisis, when taxpayers had to rescue them to the tune of tens of billions of pounds. They’re certainly stronger, with comfortable capital buffers, as they head into what could be the worst recession in three centuries.
But with the future of the economic rebound still far from certain, they’re having to set aside huge sums of cash to cover the potential loan losses. With rock-bottom interest rates squeezing profit margins, and the terms of Brexit still not finalized, it’s little wonder investors are staying clear.