(July 5 Reuters) The Bank of England took steps on Tuesday to ensure British banks keep lending and insurers do not dump corporate bonds in the "challenging" period that is likely to follow the country's vote to leave the European Union.
The central bank said risks it had identified before the referendum were starting to materialize, including lower demand for commercial property. Late on Monday, insurer Standard Life (SLL) said it had halted withdrawals from its main British real estate fund.
The central bank also said it was closely monitoring investors' willingness to fund Britain's large current account deficit after the shock outcome of the vote, as well as high levels of household debt and the subdued global economy.
"There is evidence that some risks have begun to crystallize. The current outlook for UK financial stability is challenging," the BOE said after its Financial Policy Committee held two meetings after the June 23 referendum.
Click on the link below to see the full story from Reuters: (by David Milliken and Huw Jones)