Report: UK banks reducing eurozone exposure

18 November 2011

UK banks are taking drastic measures to reduce their exposure to the ongoing eurozone crisis, new figures have shown.

Statistics collated by the Financial Times and published today (18 November), revealed that financiers in Britain have cut their lending to banks in peripheral states in the embattled region by almost a quarter in the last three months.

In the quarter leading up to September this year, the biggest four banks in the UK loaned out £10.5 billion ($16.5 billion) to such countries, a figure representing a 24 per cent decline and reflective of the increase in nervousness around the eurozone.

Recently, nations such as Italy and Spain have seen the cost of their ten-year government bond yields climb towards and above the danger threshold of seven per cent, while there are now also concerns that France may be getting caught up in the crisis.

Jon Pain of KPMG told the news source this will be a "real concern" to regulatory authorities.

By Gary Cooper

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