Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment his Department has made of the possible risk of Greek sovereign default and subsequent effects on the UK banking sector.

The Treasury regularly monitors global economic developments and their impact on the UK as part of the normal process of policy development. The UK is one of the most open economies in the world through trade and financial channels, and we are not immune to developments in the global economy. The best way to insulate the UK economy from any such instability is to stick to our long term economic plan.

The exposure of UK banks to Greece is small. Moreover the Bank of England’s recent stress tests showed that our banking sector is far stronger and better capitalised than before.