British banks rate has noticeably declined

10.10.2011 Recently the rate of several leading British banks (Lloyds TSB Bank, Royal Bank of Scotland, Santander UK, Co-Operative Bank, Nationwide Building Society and other smaller ones) has significantly declined. Such estimates and forecasts for further downgrade were given by an international agency Moody's Investors Service. However, in spite of this fact the agency does not believe that stability of the United Kingdom banking system is threatened.
The United Kingdom Government has openly declared its positions concerning British banks support. It will not provide assistance to small credit institutions and allow them to fail. As for the strategically important banks, the government will continue to support them.

Expert’s opinion

“Now Britain is in over-European trend of bank ratings decrease. Though the international agency Moody's Investors Service does not declare about the loss of stability of the United Kingdom banking system it is likely to face such a problem. The situation is aggravated by the continuation of assets withdrawal from European banks”.

On the basis: www.rbc.ru

Andrianova Irina ( the lawyer of international consulting department of “Honest & Bright”)