UK banks 'told to accelerate plans for eurozone collapse'

1 December 2011

Banks in the UK have been advised to speed up the process of making provisions for the end of the eurozone.

Hector Sants, chief executive of the Financial Services Authority (FSA), has instructed the country's major financiers to formulate contingency plans as quickly as possible to avoid problems should the economic region split, Sky News reports.

Sources have indicated that Mr Sants held a meeting with senior officials from Standard Chartered, Barclays, HSBC, Royal Bank of Scotland, Santander and Lloyds last week in order to warn them of this potential development.

An individual involved in the talks told the news source: "He said that the banks should be stepping up their contingency planning for countries leaving the eurozone by running a wide range of stress tests."

This comes after Bank of England (BoE) governor Mervyn King told a Parliamentary committee that provisions need to make sure the British banking system is strong enough to cope with a eurozone collapse.

By Asim Shah

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