Bail-in drives Moody’s to turn negative on UK banks

By Nathan Collins
07 Aug 2014

Moody’s changed its outlook for the UK’s banking sector to negative on Wednesday, judging that banks are likely to benefit from less support from the sovereign in the future. The agency also noted that plans to ring-fence retail banking from investment banking could harm credit ratings.

The agency downgraded the outlook for the system as a whole to negative. The decision was driven mainly by the negative implications of the UK’s resolution and bail-in regime, along with the ring-fencing of retail banks from investment banks.

Moody’s report focuses mainly on the UK’s six largest ...

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