UK banks 'will be helped if eurozone collapses'

22 December 2011

Contingency plans are being drawn up to help Britain's banking industry should the eurozone dissolve in the near future.

That is according to Charles Bean, deputy governor of the Bank of England (BoE), who has offered assurances to financiers that they will be supported if a break-up of the single currency region occurs.

During an interview with BBC Radio 4, Mr Bean labelled the ongoing crisis on the continent a "worrying situation" that is showing no signs of abating as policymakers continue to attempt to draw up a resolution package.

And, with this in mind, the official stated that the BoE has recently launched a temporary loan facility that could be accessed by UK banks should the worst happen.

"Countries eventually may feel that they are better off outside the eurozone than in it," he warned.

Recently, Italian deputy economy minister Vittorio Grilli insisted the problems on the continent will be eased sooner rather than later.

By Claire Archer

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