Digital Banks Could be at More Risk from a No Deal Brexit

A new report by ratings agency Fitch says digital banks could be more vulnerable than traditional banks in the event of an economic downturn or a no deal Brexit scenario; “A cyclical downturn or a disruptive no-deal Brexit leading to higher unemployment or falling property prices could expose weaknesses in their risk management and financial position.”; exposure to consumer mortgages or property lending would lead to the highest level of risk; the Bank of England wrote a letter to challenger bank CEOs saying they need to correct overly optimistic risk modeling. Source.

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