U.K. property funds are at the epicenter of market action after Aviva (NYSE:AV), M&G and Standard Life (OTCPK:SLFPY) all moved to suspend their dealings in the investment vehicles amid fears of increasing redemptions in the commercial real estate space.
In total, the three money managers hold over £9B of investor assets.
Aviva said separately it aims to increase its dividend payout ratio to 50% in 2017 and it was confident about future growth despite the Brexit.
The Bank of England has taken steps to shore up the U.K. economy following Britons' decision to exit the EU, warning that the outlook for the stability of the financial system has become "challenging."
The decision to reduce the so-called countercyclical capital buffer to zero will allow British banks to lend an extra £150B to U.K. businesses and households, keeping the economy flush with credit.
Moody's has cut its outlook on the British banking system from stable to negative following the Brexit referendum.
"We expect lower economic growth and heightened uncertainty over the U.K.'s future trade relationship with the EU to lead to reduced demand for credit, higher credit losses and more volatile wholesale funding conditions," the agency declared.
On the other side of the fence, ECB Vice President Vitor Constancio said banks were oversold in the wake of Brexit and it wasn't a "Lehman moment."