2017.11.2823:09:00UTC+00UK’s Biggest Lenders Pass BoE’s Stress Tests

Britain's banks could keep their head above the water if the UK withdraws from the European Union in a “disorderly Brexit” in 2019, according to the Bank of England.

All of UK's largest lenders have passed BoE's stress tests, the first since the financial crisis. The tests of unfavorable economic scenarios reveals if banks could continue to lend money in order to help the UK economy.

According to Bank governor Mark Carney, the banks would be able to cope in the unlikely event of no deal when Brexit is triggered.

The worst-case scenario the BoE drafted in the stress tests included a 33 percent decline in house prices, an increase in the borrowing rates from 0.5 percent to 4 percent within the span of two years and the jobless rate climbing to 9.5 percent from its present rate of 4.3 percent.

Carney said that all parties were cooperating to avoid the scenario of a no-deal Brexit, but cautioned that if the UK exited EU in an abrupt and disorganized manner, household and businesses would be inflicted with some repercussions.