UK banks may be at risk from Italy's national debt, which stands at more than 130% of gross domestic product, more than twice the 60% The Bank of England limit. EU warns of a "doom loop", in which problems with Italy's banks spread across Europe; French and German lenders have especially high exposure to the country's debt. While the UK is more isolated, the toxic situation could lead to higher rates on loans and mortgages and an increase in non-performing loans.
UK banks may be at risk from Italy's national debt, which stands at more than 130% of gross domestic product, more than twice the 60% EU limit. The Bank of England warns of a "doom loop", in which problems with Italy's banks spread across Europe; French and German lenders have especially high exposure to the country's debt. While the UK is more isolated, the toxic situation could lead to higher rates on loans and mortgages and an increase in non-performing loans.