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The European Sovereign Debt Crisis seriously affected the financial sectors of United Kingdom, the banking industry of UK not being an exception. Bank of England pointed out that UK banks'' exposure to other European lenders made them financially vulnerable. As such, it raised the question regarding the financial strength of some European banks including UK''s banks. Experts further revealed that the European Debt Crisis might affect markets thereby causing a fall in prices for risky assets such as corporate bonds which might cause UK banks to write down the value of loans and other assets, resulting in heavy losses. However, the banks located in UK raised funds for protecting themselves against any future crisis in the financial sector. Experts suggested that further increments would be necessary to control the problem. Therefore, it remained a matter of contention whether European Sovereign Debt Crisis could have an adverse impact on the UK banking sector.