UK banks 'suffer massive losses'

15 September 2008

Britain's banks have lost over $140 billion due to the credit crisis, new research has shown.

According to financial information site, credit losses and asset writedowns over the past year have also led many firms to lose over 90 per cent of their market value.

The UK financial sector was hit last summer by the near-collapse of mortgage lender Northern Rock, which had to be bailed out by the government after finding itself unable to raise revenue in the credit crunch.

It was also the subject of the first bank run in the UK for over a century, with savers queuing outside of branches to take their money out of the bank.

Andy Yates, director of DigitalLook, said: "One year on from the run on Northern Rock you can clearly see how devastating the impact of the credit crunch has been on the banking sector.

"Banks with significant chunks of their business in mortgages have been hardest hit, losing two thirds or more of their value. Banks with more exposure to emerging markets, such as HSBC and Standard Chartered, have weathered the storm far better."

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