Ratings agency Moody’s has upgraded its outlook for the UK banking system to stable from negative, despite the continued expectation of low medium-term economic growth.
It cites a number of factors including:
- The UK's increasingly stable economic outlook despite its low growth prospects
- The consequent improvement in the outlook for asset quality
- Continuing improvements in capital ratios driven in part by more stringent capital requirements
- An expectation that improvements in funding and liquidity metrics will be maintained over the outlook period
- Improving profitability and efficiency ratios due to lower impairments