Swaps between UK banks and foreign firms climb in Q2
Total value of derivatives assets and liabilities with overseas lenders hits £2.09 trillion
UK banks built up swap positions with overseas companies in Q2, while their exposures to domestic public sector entities collapsed, data from the Bank of England shows.
Gross derivatives – assets plus liabilities – between UK dealers and foreign banks expanded 20% to £2.09 trillion ($2.54 trillion) in the three months to end-June, to their highest level since Q4 2016. Those between UK banks and
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