(MENAFN- ProactiveInvestors - UK)
Shares in Barclays Plc (LON:BARC), Lloyds Banking Group Plc (LON:LLOY) and Royal Bank of Scotland Group Plc (LON:RBS) were among the worst hit on Friday as they plummeted 20%, 21% and 17% respectively.
The Brexit may in the future impact upon growth in the banking sector, availability of funding, and the ''public balance sheet'', according to credit ratings agency S & P (Standard & Poors), though it is initially holding off a downgrade.
In a statement the ratings agency said: ''the leave vote has no immediate impact on the ratings on UK domestic commercial banks.
''We see the effects of a leave vote on these banks as indirect, arising from potential adverse consequences for economic activity, new business volumes, asset prices, and demand for UK-related debt.''
S & P more broadly, however, noted its past warning that the leave vote would ''deter investment in the economy, decrease official demand for sterling reserves, and put the UK''s financial services sector at a competitive disadvantage.''
It separately added that UK GDP growth will fall by 1% percentage point in 2017, though that assumes foreign investment into the UK doesn''t ''completely dry up'' following the Brexit vote.
''While the full economic impact of Brexit is not likely to become clear for some years, what''s for sure is that uncertainty and transitional costs - of the UK of pulling out of the EU - are likely to slow growth materially.
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