The UK’s six largest lenders could lose £12bn in the event of a crisis within the country’s commercial property market, research by rating firm Moody’s shows.
That amounts to 14% of the banks’ total exposure to the sector. RBS would be worst hit, with potential losses totalling £4bn.
Nevertheless, the banks are in a better position to deal with a weakening in the sector, having reduced their exposure to it by 40% since 2010.
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