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Bank of England's Woods cautiously optimistic Evergrande "won't go badly wrong"

LONDON, Sept 23 (Reuters) - Bank of England Deputy Governor Sam Woods said on Thursday that Britain's banks have no major exposures to Evergrande and he does not expect the troubled Chinese property group to "go badly wrong".

"The direct exposures of the UK banks and insurance companies to Evergrande are not material, so it's really not a concern in the first round effect," Woods told Reuters.

"But the question on everyone's mind is how will the authorities choose to handle this in China, and could it represent something broader? Obviously at some point that could become something that we need to worry about."

The BoE has checked exposures of UK banks to Evergrande and this year's stress test scenario for UK lenders included a "hard landing" for the Chinese economy.

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"My base case is it won't go badly wrong," Woods said.

"I am very cautiously optimistic the Chinese authorities will want to find a way through it that doesn't create a kind of major issue." (Reporting by Huw Jones Editing by Rachel Armstrong)