Share the article
twitter-iconcopy-link-iconprint-icon
share-icon
ViewpointOctober 3 2016

The challenge of Brexit: banks’ resilience is no excuse for complacency

The UK's Brexit vote in June came as a blow to most in the EU, but the lack of widespread financial shock in the immediate aftermath of the vote showed how the improvements made to the euro area's post-crisis banking sector are paying off. France's central bank governor looks at why this was the case, but warns there is no room for complacency and calls for further progress on the economic part of the EU’s agenda.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

The vote of the British people in favour of Brexit was bad news for the UK, and for Europe. The victory of the “leave” camp has opened a period of uncertainty and we now have to face up to this new challenge.

The immediate consequences were of a financial nature: in addition to the sharp fall in the British pound, stock prices experienced strong corrections, especially in the banking sector. But there was no widespread panic: financial markets did not freeze up; stock prices returned to their mid-June levels from as early as end-June, or mid-July in the case of bank stocks; and the British pound rapidly stabilised at about 10% below its pre-referendum level.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial