British regulators warn of the collapse of 4,000 financial houses

Small and medium-sized financial institutions in particular are threatened.

The British financial regulator FCA sees the black for thousands of smaller financial institutions in the country hard hit by the corona crisis. The Financial Conduct Authority (FCA) said on Thursday that the financial strength of around 4,000 companies in the industry had fallen due to the pandemic and the risk of collapse increased significantly.

The authority involved 23,000 institutes in its investigations. The threatened companies are mainly small and medium-sized financial houses.

The 1,500 largest banks in Great Britain were not included in the stress test. They are directly supervised by the Bank of England (BoE).