Britain's most important lenders are strong enough to withstand a "disorderly Brexit" and could even weather an acute recession, the Bank of England said Tuesday. Stress tests have become a key policy instrument of central banks since the global financial crisis. The central bank's Financial Policy Committee, which monitors the stability of the banking system, also concluded that banks can continue to support the economy if the country experiences a "disorderly" exit from the EU. "Banks would likely need to restrict lending to the real economy, worsening macroeconomic outcomes," Carney said. However, he said the central bank's main assumption is that the relationship between Britain and the EU will remain "highly cooperative."

Source: ABC News November 28, 2017 09:00 UTC