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Regulator puts UK banks’ overseas funding under scrutiny

Prudential Regulation Authority chief issues fresh warning about Brexit-related risks to the country's financial stability

Regulator puts UK banks’ overseas funding under scrutiny
Photo: iStockPhoto

UK-based banks could be forced to rethink how they fund overseas operations, following fresh warnings from the Prudential Regulation Authority about risks to the country's financial stability arising from Brexit.

In a speech at The City Banquet at Mansion House on Wednesday night, Bank of England deputy governor and PRA chief executive Sam Woods announced the launch of a consultation into banks' use of debt to finance overseas arms — a practice known as double leverage.

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