Financial sector ready for no-deal Brexit says BoE
The Bank of England says the U.K. financial system is prepared for a no-deal Brexit, though uncertainties about the country’s withdrawal from the European Union continue to weigh on economic activity.
The bank’s Financial Policy Committee, which assesses financial risks, said Wednesday that legislation, temporary permissions and other preparations by British authorities have been made to “ensure that households and businesses will be able to use existing and new services from EU financial institutions.”
However, it warned that without further action by EU authorities, “some disruption to cross-border financial services in the event of a no-deal Brexit is possible.”
It also said that in a disorderly Brexit, demand for U.K. assets could be expected to “fall sharply, depreciating (the pound) and tightening financial conditions for U.K. households and businesses.”