UK banks resilient despite uncertainty, but households remain ‘squeezed’

The Financial Policy Committee said there are still channels through which UK economic conditions could be affected by recent global volatility.

The FSC stressed UK banks are ‘not exposed to material direct losses’ related to Silicon Valley Bank or Credit Suisse (AP) (AP)

The UK’s major banks are “resilient” in the face of global turmoil, but households and businesses still face the risk of higher borrowing costs as a result, according to the Bank of England.

The central bank’s Financial Policy Committee (FPC) added that there is an “urgent need” to bolster market-based finance, such as some hedge funds, amid market volatility.

It came as the Bank said that UK households remain “squeezed” by higher living costs and mortgage payments.