The British economy is enduring the twin shocks of the Covid-19 pandemic and the country’s exit from the EU. Brexit has contributed to a high degree of social and economic dislocation, and fuelled uncertainty over the prospects of whether London can remain a global financial centre in the future. The pandemic has compounded these problems by providing an immediate and shocking hit to the country’s economic trajectory. Indeed, the UK registered a contraction of gross domestic product in the order of 9.9% in 2020, its biggest annual drop in about 300 years.
Banking in this environment is not easy. But going into the pandemic, and in the immediate aftermath of Brexit, UK banks were both highly liquid and well capitalised. Fortified balance sheets and strong digital banking propositions ensured that most of the country’s largest lenders have weathered these difficulties well. Indeed, British banks have been instrumental in distributing government support schemes to the private sector and, more recently, the self-employed. As such, The Banker’s Top 1000 World Banks ranking 2021 reflects the strength of the British sector.
