The Bank of England has directed certain UK financial institutions to significantly increase their holdings of easily liquidated assets, aiming to strengthen resilience against potential market shocks stemming from a no-deal Brexit scenario, according to reports from the Financial Times.
Regulatory guidelines now require these lenders to maintain sufficient liquidity to withstand 100 consecutive days of financial stress, surpassing the standard 30-day requirement set by the Prudential Regulation Authority. The directive reflects heightened preparatory measures ahead of Brexit-related uncertainties.
A Bank of England representative declined to comment on the matter, stating no immediate statements were available.
Reporting by Ishita Chigilli Palli in Bengaluru; Editing by Peter Cooney
