Regulators advise UK banks on eurozone plans

15 December 2011

British banks are holding talks with regulatory bodies regarding the plans they have in place to deal with the possible dissolution of the eurozone.

That is according to a source close to the negotiations, who has told the Wall Street Journal that the Financial Services Authority (FSA) is in touch with senior officials from the country's major financiers about their contingency plans for such an occurrence.

Lenders have been asked to provide reports featuring details of what provisions they have put in place should some member states decide to go back to using their previous currencies.

In addition, the insider noted that further talks will take place later this week in which executives will share ideas with each other on how they could handle this problem should it arise.

Earlier this week (12 December), the Bank for International Settlements revealed that UK financiers have struggled more than many of their continental counterparts throughout the eurozone crisis.

By Claire Archer

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