LONDON: Britain’s banks could deal with a hard Brexit next March if need be, Bank of England Governor Mark Carney said on Wednesday, rejecting European Union warnings that lenders are inadequately prepared.
The BoE’s Financial Policy Committee (FPC) said banks in Britain are holding enough capital and will not need any more to face any turbulence in markets if Britain leaves the EU next March without a deal.
On Monday, the European Union’s banking watchdog, the European Banking Authority (EBA) said banks had failed to make enough progress in their Brexit preparations and should not expect help from “miracle” public intervention.
“With respect, the EBA’s comments earlier this week were incomplete” Carney said in a news conference.
“They did not acknowledge the temporary permissions regime ... which has been very clearly signaled by the UK government.” Carney said British authorities’ preparation of banks for Brexit had been “rock solid” and that the BoE continued to judge that the UK banking system could support the real economy through a disorderly Brexit.
The FPC said capital levels at banks were now high enough that it would leave unchanged their so-called counter cyclical capital buffer or CCYB at 1 percent, binding from the end of November.
The committee had said in March it would review this month whether the buffer should be raised due to other risks that build up over the course of a credit cycle.
These include mortgages granted at high loan-to-income ratios that bump up against the BoE’s ceiling and unsecured consumer lending.
This buffer aims to ensure that banks build up capital to guard against risks as the credit cycle picks up, which they can then draw on during a downturn.
It applies on top of other internationally-required buffers.
The FPC said on Wednesday that consumer credit continues to expand rapidly, but measures already taken to stop overheating were already having an impact, with banks reporting a significant tightening of unsecured credit.
The FPC said Britain has made good progress in ensuring that outstanding derivatives contracts do not pose a risk to the British economy if there is no Brexit transition deal in place by next March.
The FPC also said it will launch in 2019 its first pilot stress test to check on the ability of a select number of lenders to withstand a cyberattack.
Risks from the global economy remained material and have increased, the BoE said, noting that trade tensions have intensified.
Bank of England says UK banks can manage hard Brexit
Bank of England says UK banks can manage hard Brexit
First EU–Saudi roundtable on critical raw materials reflects shared policy commitment
RIYADH: The EU–Saudi Arabia Business and Investment Dialogue on Advancing Critical Raw Materials Value Chains, held in Riyadh as part of the Future Minerals Forum, brought together senior policymakers, industry leaders, and investors to advance strategic cooperation across critical raw materials value chains.
Organized under a Team Europe approach by the EU–GCC Cooperation on Green Transition Project, in coordination with the EU Delegation to Saudi Arabia, the European Chamber of Commerce in the Kingdom and in close cooperation with FMF, the dialogue provided a high-level platform to explore European actions under the EU Critical Raw Materials Act and ResourceEU alongside the Kingdom’s aspirations for minerals, industrial, and investment priorities.
This is in line with Saudi Vision 2030 and broader regional ambitions across the GCC, MENA, and Africa.
ResourceEU is the EU’s new strategic action plan, launched in late 2025, to secure a reliable supply of critical raw materials like lithium, rare earths, and cobalt, reducing dependency on single suppliers, such as China, by boosting domestic extraction, processing, recycling, stockpiling, and strategic partnerships with resource-rich nations.
The first ever EU–Saudi roundtable on critical raw materials was opened by the bloc’s Ambassador to the Kingdom, Christophe Farnaud, together with Saudi Deputy Minister for Mining Development Turki Al-Babtain, turning policy alignment into concrete cooperation.
Farnaud underlined the central role of international cooperation in the implementation of the EU’s critical raw materials policy framework.
“As the European Union advances the implementation of its Critical Raw Materials policy, international cooperation is indispensable to building secure, diversified, and sustainable value chains. Saudi Arabia is a key partner in this effort. This dialogue reflects our shared commitment to translate policy alignment into concrete business and investment cooperation that supports the green and digital transitions,” said the ambassador.
Discussions focused on strengthening resilient, diversified, and responsible CRM supply chains that are essential to the green and digital transitions.
Participants explored concrete opportunities for EU–Saudi cooperation across the full value chain, including exploration, mining, and processing and refining, as well as recycling, downstream manufacturing, and the mobilization of private investment and sustainable finance, underpinned by high environmental, social, and governance standards.
From the Saudi side, the dialogue was framed as a key contribution to the Kingdom’s industrial transformation and long-term economic diversification agenda under Vision 2030, with a strong focus on responsible resource development and global market integration.
“Developing globally competitive mineral hubs and sustainable value chains is a central pillar of Saudi Vision 2030 and the Kingdom’s industrial transformation. Our engagement with the European Union through this dialogue to strengthen upstream and downstream integration, attract high-quality investment, and advance responsible mining and processing. Enhanced cooperation with the EU, capitalizing on the demand dynamics of the EU Critical Raw Materials Act, will be key to delivering long-term value for both sides,” said Al-Babtain.
Valere Moutarlier, deputy director-general for European industry decarbonization, and directorate-general for the internal market, industry, entrepreneurship and SMEs at European Commission, said the EU Critical Raw Materials Act and ResourceEU provided a clear framework to strengthen Europe’s resilience while deepening its cooperation with international partners.
“Cooperation with Saudi Arabia is essential to advancing secure, sustainable, and diversified critical raw materials value chains. Dialogues such as this play a key role in translating policy ambitions into concrete industrial and investment cooperation,” she added.
