British banks ‘unlikely to need recapitalising’

The Greek crisis has shaken European banks exposed to the country’s debt, making borrowing between them difficult. The European Central Bank offered emergency stabilisation loans but the summit deal should put them on a safer footing. UK banks – excluded from the deal– are less exposed to Greek debt but have seen their shares hit by market fluctuations.

He said: “If the Greek plan doesn’t work or we don’t get solutions to other issues that arise, and the wheels do come off in Europe, then you get this cascading effect; of banks starting to default. That’s the big scary thing.

“That’s unlikely at this stage, but the markets continually want that confidence and one is always nervous when you’re reliant on the political process for commercial outcomes.”