UK banks 'prepared for Greek exit'

21 May 2012

Banks in the UK are now in a strong enough state to withstand the impact Greece's potential exit would have on the eurozone.

That is the opinion of Michael Cohrs, member of the Bank of England's (BoE) financial risk monitoring committee, who believes financiers are prepared for any eventuality.

During an interview with the Guardian, Mr Cohrs - a former senior official at Deutsche Bank - noted that it is difficult to predict how the situation regarding Greece will pan out as the issue seems to be unfolding at an hourly rate.

However, he insisted that while the BoE remains at "alert stations" just in case anything goes wrong, British banks are ready to deal with a withdrawal.

"They have thought about their direct exposures to Greece and they have marked them to appropriate levels, their liquidity is strong and they have enough capital to withstand shocks," the official stated.

By Tony Aynsley

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