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| Carney: UK stability outlook has 'worsened' in light of Greece | Carney: UK stability outlook has 'worsened' in light of Greece |
| (35 minutes later) | |
| The outlook for the UK's financial stability "has worsened" in the light of events in Greece, Bank of England governor Mark Carney has warned. | The outlook for the UK's financial stability "has worsened" in the light of events in Greece, Bank of England governor Mark Carney has warned. |
| Risks in relation to Greece include a reduction in the risk appetite of businesses and a knock-on effect on households, Mr Carney said. | Risks in relation to Greece include a reduction in the risk appetite of businesses and a knock-on effect on households, Mr Carney said. |
| But the UK's direct financial exposure to Greece is "minimal", he said. | But the UK's direct financial exposure to Greece is "minimal", he said. |
| On Tuesday night, Greece became the first developed nation to fail to make a payment to the IMF. | On Tuesday night, Greece became the first developed nation to fail to make a payment to the IMF. |
| The International Monetary Fund confirmed that Greece had failed to make a repayment equivalent to about €1.5bn (£1.1bn). | The International Monetary Fund confirmed that Greece had failed to make a repayment equivalent to about €1.5bn (£1.1bn). |
| This week, Greece closed its banks and restricted cash withdrawals. On Sunday, the country is due to hold a snap referendum on the crisis. | This week, Greece closed its banks and restricted cash withdrawals. On Sunday, the country is due to hold a snap referendum on the crisis. |
| Speaking at a briefing on the Bank of England's latest Financial Stability Report, Mr Carney said: "Events in Greece have tipped the balance to 'the outlook has worsened,'" he said. | |
| The UK was "relatively well insulated" from the direct consequences of events in Greece, Mr Carney said. UK banks had a small exposure to Greece relative to their capital base, and Greek banks' UK footprint was "tiny". | |
| But he said the issue seemed to be a question of what would happen more broadly to the risks that businesses were prepared to take, and the possible knock-on effects on the wider UK economy. | |
| He added: "In contrast [to direct UK risk from Greece], our economic and financial exposure to the euro area is considerable. Fortunately, the euro-area economy is stronger than a few years ago. | |
| "UK authorities will continue to monitor the situation thoroughly and will take any action necessary to safeguard UK financial stability." |