Upgrade for UK’s lenders

Tim Wallace
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BRITISH banks are getting stronger on the back of the economy’s emerging recovery, credit ratings agency Moody’s announced yesterday.

It revised the banking system’s outlook from negative to stable on the basis that the economy’s stability should make borrowers more likely to pay back their loans, improving banks’ profitability.

And once the banks increase their capital levels in line with instructions from the Bank of England’s prudential regulation authority, they “will compare favourably to their European peers,” said the agency.