Brexit fears see European banks slash UK assets by US$425 billion in a year

London

EUROPEAN banks pared their exposure to Britain in the aftermath of its vote to quit the European Union (EU), slashing their UK assets by US$425 billion in the span of a year.

The decline was driven by a 35 per cent drop in derivatives exposures, showing European banks are preparing for the risk that the UK fails to reach an agreement on its future relationship with the bloc before its departure.