The Royal Bank of Scotland (RBS( has warned that a failure to reach a deal on Brexit could lead to recession, hours after British Prime Minister Theresa May's speech that she announced the end of austerity at the Conservative Congress.
The bank's chief executive said the economy was supposed to grow by 1-1.5% next year, but in case of a bad Brexit it would affect the bank's earnings and share price. He said the bank had become more cautious about lending.
Mark Carney, the governor of the Bank of England, made clear last month the possible consequences of Brexit without agreement, and then warned of a 35% house price crash over three years in worst-case scenarios.
