Europe

Bank of England pledges £250bn to support financial markets

Bank of England governor Mark Carney has issued a statement saying there is up to £250bn of additional funds to support the financial markets, as he looks to restore confidence following the leave vote.

The pound has suffered its largest single day fall in 30 years, while many major housebuilders and listed property companies have seen stocks fall by more than 20%.

“But we are well prepared for this. The Treasury and the Bank of England have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning,” he said.

“The bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward. These adjustments will be supported by a resilient UK financial system – one that the Bank of England has consistently strengthened over the last seven years.”

Carney said the capital requirements for the 10 largest UK banks is 10 times higher than before the crisis against situations far more stressful than the country currently faces.

He said UK banks have raised over £130bn of capital and more than £600bn of liquid assets.

“The bank will continue to consult and cooperate with all relevant domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy,” he said.

“We have taken all the necessary steps to prepare for today’s events.

“In the future, we will not hesitate to take any additional measures required to meet our responsibilities as the United Kingdom moves forward.”

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