"The Bank of England has begun to consider how the UK’s banking market will look post-Brexit as it waits to see the effect of the Pandemic on the wider economy.
Capital adequacy regulations are being considered with banks that retrench back into the UK being required to allocate less capital to their domestic operations and thus being able to increase lending.
This will be in line with what was happening pre-Pandemic across Europe as banks looked to concentrate on core businesses, relying less on more capital-intensive areas like trading financial assets.
This should provide companies that are cash hungry as they begin to reopen following lockdown to access facilities to support their operations until cash flow becomes more settled.
"
Beyond Currency Market Commentary:
Aims to provide deep insights into the political and economic events worldwide that can cause currencies to change and how this can affect your FX Exposure.