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Will UK banks catch the coronavirus?

Lenders’ capital reserves should insulate them – although dividends could be on the block
Will UK banks catch the coronavirus?

Since fears around the global spread of Covid-19 began to coalesce on 24 February, the FTSE 350 Banks Index (NMX8350) has fallen by a fifth, bringing the year-to-date declines to more than 28 per cent. That should be of little surprise to investors. By their nature, lenders are always highly exposed to fears around contracting economic activity.

But so far, much of the commentary has been confined to two well-understood aspects of the fallout.

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