Shares in Europe’s biggest banks were hit by massive losses as markets were at their most vulnerable after the British public voted for the UK to leave the EU.
Shares in Royal Bank of Scotland, Lloyds and Barclays fell as much as 30 per cent on opening, before rebounding slightly to trade at 16.7 per cent, 18 per cent and 17 per cent in mid-morning trading.
Bank bosses tried to reassure investors after the results came through.
“Our commitment to British businesses, customers and staff in the UK remains undiminished,” Douglas Flint, HSBC group chairman, said.
“We are today entering a new era for Britain and British business. The work to establish fresh terms of trade with our European and global partners will be complex and time consuming. We will be working tirelessly in the coming weeks and months to help our customers adjust to and prepare for the new environment,” he added.
In a
speech following the results, Mark Carney, the governor of the Bank of
England, said some volatility can be expected following the UK's
decision to leave the EU.
He sought to reassure investors saying the UK is “well prepared” for the event.
“Some market and economic volatility can be expected as this process unfolds. But we are well prepared for this.
“The Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have been in close contact, including through the night and this morning,” Carney said.
The vote has pummelled the value of the pound to its weakest level against the dollar in more than 31 years and raised the prospect of extreme volatility in other financial markets.
He sought to reassure investors saying the UK is “well prepared” for the event.
“Some market and economic volatility can be expected as this process unfolds. But we are well prepared for this.
“The Treasury and the Bank of England have engaged in extensive contingency planning and the chancellor and I have been in close contact, including through the night and this morning,” Carney said.
The vote has pummelled the value of the pound to its weakest level against the dollar in more than 31 years and raised the prospect of extreme volatility in other financial markets.
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