Shawbrook would survive seven financial disasters, including Brexit – Emma Cox

Shawbrook would survive seven financial disasters, including Brexit – Emma Cox

 

The lender highlighted that it was preparing for any potential fallout from Brexit, which is causing increasing uncertainty among the economy as the possibility of a no-deal grows.

Speaking at the Connect annual conference, Shawbrook Commercial sales director Emma Cox said: “As a regulated bank we have to be well capitalised and we have a contingency for disaster recovery.

“Brexit does feature heavily in that as well as some other things that are coming down the line and we need to ensure we are well protected and insulated against those.

“A couple of principles to pick-up are that [we are conducting] sensible lending which is sustainable and that we are focusing on the quality of the underwrite, which will withstand some of the peaks and troughs we are likely to see over the next 18 months or even five years and beyond.”

 

Seven concurrent disasters

Cox also explained how the bank had conducted significant stress testing and was confident customers would not be at risk during a recession or downturn.

“Another thing as a regulated bank is we have to ensure that we can survive a number of disasters happening all at one time,” she continued.

“I’m relieved to say we did a modelled test run and were able to survive seven disasters in concurrence and still continue to survive.

“Obviously our lending would have to be stripped back in an absolute doomsday worst case scenario, but our borrowers and savers’ assets and money would be safe,” she added.

Specialist Lending Solutions has contacted Shawbrook to ask for more details about the tests conducted but no-one was available to comment.