Brexit: Is the Financial System Ready?

“Some market and economic volatility can be expected as this process unfolds. But we are well prepared for this.” Those were the words of Mark Carney, governor of the Bank of England, following the UK referendum on EU membership last Friday. As PIIE President Adam Posen previously argued, those words were well chosen. There has been contingency planning at both the Bank of England and the UK Treasury. Stress tests reveal that UK commercial banks have relatively robust capital buffers against une

Source: Peterson Institute (PIIE)