Moody’s: negative outlook on UK banking system

Moody's revised to negative from stable its outlook on the UK banking system due to the release of the UK by the European Union.

'The change of the outlook – according to a Moody's statement – reflects the expectation that the heightened uncertainty about future trade agreements between Britain and the European Union will lead to fundamental weaker credit for the country's banks' .

According to the rating agency, this uncertainty will lead to 'a decline in confidence and a reduction in investment and expenditure with negative effects on consumption's revenue, asset quality and profitability of all the UK banks.'