British banks shrug off Brexit drama at Westminster

Banks shares have risen modestly giving hopes of a compromise Plan B for Brexit.

On Wednesday, the share prices of British banks witnessed heavy losses in the wake of the parliamentary vote on the Brexit deal which saw one of the most blistering defeat for a UK government in recent history.

Shares of Royal Bank of Scotland and Lloyds Banking Group rose by 1.7% and 1.4% respectively, while that of HSBC and Barclays rose by 0.7% by 0909 GMT.

According to analysts, the risks of further deadlock has already been factored into the prices of bank shares.

According to some investors, which include David Roberts, co-manager on the Liontrust Strategic Bond fund, the modest rise in the price of bank shares suggests that a momentum is building built for a compromise ‘Plan B’.

“Global investors now believe the chances of a ‘hard’ economically damaging Brexit have receded … There is still a long way to go, but hopes of a mutually beneficial solution are growing,” said Roberts.

Opponents to British Prime Minister Theresa May’s deal have honed in on several elements, including the Irish “backstop” and the “divorce bill” which could run upto $50.2 billion (39 billion pounds).

In efforts to shore up business sentiments, Lloyds has announced a commitment to lend 18 billion pounds to established UK firms and start-ups this year.

“During these uncertain times, it is important that our customers have financial support and expert guidance to navigate the challenges they may face,” said Antonio Horta Osorio, CEO of Lloyds, in a statement. “Whatever the future brings, we will continue to support UK businesses as part of our commitment to help Britain prosper.”

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