Posted: October 12th, 2016

nvestigating the implications of the recent vote of leave the EU on the credit risk exposure of your international banking institution to the Chief Financial Officer.

Option B: Brexit and the UK Bank Risk Exposure �The Bank (Bank of England) took “timely, comprehensive and concrete” action, which acted to “support, cushion and help the economy to adjust”. Last month’s rate cut to an historic low of 0.25% helped support house prices and the wider economy�I am “absolutely serene” about the Bank’s preparations for the impact from the Brexit vote. Bank of England, Governor Mark Carney Background: You have been assigned the task of investigating the implications of the recent vote of leave the EU on the credit risk exposure of your international banking institution to the Chief Financial Officer. Current research: Using the PwC�s article on �leaving the EU: Implications for the UK financial sector� as the starting point, write a 2,000­word business report on the following: a. Discuss critically the potential implications and impact on individual banks and the UK financial sector of the Brexit vote. b. Discuss the effectiveness of the various safe guards to mitigate the impacts of an exit? c. Examine in detail the impact of an exit on the credit exposure of UK banks to the EU markets and suggest possible ways of mitigating against these. Learning outcomes tested by the report Subject­specific skills � Familiarise yourselves with the potential impact of Brexit on UK banks� credit risk exposure. � Appreciate the importance of putting in place mitigating procedures to cushion any credit risk exposure. � Understand and explain the response of UK government to Brexit � Explain and analyse the policy implications of the UK government on UK banks. Marking Criteria This assessment particularly focuses on your capacity to: � Think critically; examine problems and issues from a number of perspectives, challenging viewpoints, ideas and concepts, and present good arguments. � Present written information in a report format to professional standards of organisation, clarity and logical coherence. � Discuss and defend ideas, concepts and views effectively through written communication.