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Business

Small banks caught up in Brexit bloodbath

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Opening sequence

Business

Small banks caught up in Brexit bloodbath

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COMING UP:Small banks caught up in Brexit bloodbath

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00:00:01
>> UK banks are still feeling the Brexit burn. But it's the smallest lenders who have been hit hardest.>>
INAUDIBL
]>> Their shares plunging an average of 37% as investors worry about their future prospects.>> If there is gonna be a recession, what's their game plan for these smaller guys?
00:00:18
>> Reuters' Lawrence White says so-called challenger banks, like Aldermore and Virgin Money, rely on a buoyant economy and rising demand for loans. And with a downturn in the UK's economy predicted, he says upstart lenders may struggle.>> The banks are obviously worried. They're going out there and trying to reassure their customers we're here to lend for you, it's business as usual.
00:00:38
But we've already heard from some banks that they are going to tighten their lending criteria, which makes it harder for small businesses to borrow, which makes it an impact on the economy.>> Big banks too, are facing heavy losses. The four largest banks have seen their shares drop an average of 21% since the vote.