British banks’ confidence slumps amid Brexit uncertainty


Confidence about the business environment among Britain’s banking services firms slumped in the second quarter of this year, according to a poll posted on Tuesday.

The newest quarterly study of 94 financial services firms by business lobby CBI and consultancy PwC discovered sentiment about Britain’s overall business climate worsening, with banks and life insurance companies especially cynical.

The release adds to a series of lacklustre information showing the British economy failing.

Trust in the financial services sector – Britain’s largest source of tax income – has now sunk in five out of the last six quarters.

“While business activity is holding up strongly, optimism took another dive, which likely reflected a mix of Brexit uncertainty and concerns that financial market conditions could tighten,” said Rain Newton-Smith, CBI chief economist.

Britain will have to arrange new trading agreements with the EU, and it is unpropitious banks will maintain access to sell their services and assist clients across the economic bloc.

The biggest global banks in London prepare to transfer thousands of jobs to the continent in the following two years.

The survey showed that businesses expect to cut back on almost all forms of capital spending.

Meanwhile, overall business confidence dives to a five-year low after the referendum.