If you thought the UK had come out of the European crisis smelling of roses, then credit ratings agency Moody's yesterday poured cold water on the UK banking sector: as it maintained its negative outlook on the sector for the next 18 months.

Moody's has had a negative view on the sector since 2008, but what it said in its update stands to reason: there is continuing economic uncertainty which is fuelled by the possible effect of the UK's budget cuts. Combine these concerns with a declining systemic support for financial institutions and their refinancing needs - and there is a very murky picture for the sector.