Bank of England policymakers have flagged the country’s exit from the EU as a key risk to financial stability, warning British banks that any knee-jerk reactions to Brexit will hit the UK economy.
The BoE's Financial Policy Committee said that it would be making sure banks are prepared for a “range of possible outcomes” on Monday, two days before Prime Minister Theresa May begins the two-year process of leaving the EU.
In its quarterly assessment the FPC said that it will oversee banks’ contingency plans and "assess the financial stability implications of firms' plans to adapt" to Brexit.
It warned that any sudden changes could "disrupt the provision of market liquidity and investment banking services, particularly to the EU real economy, which could spill back to the UK economy through trade and financial linkages".
Bank of England policymakers have flagged the country’s exit from the EU as a key risk to financial stability, warning British banks that any knee-jerk reactions to Brexit will hit the UK economy.
The BoE's Financial Policy Committee said that it would be making sure banks are prepared for a “range of possible outcomes” on Monday, two days before Prime Minister Theresa May begins the two-year process of leaving the EU.
In its quarterly assessment the FPC said that it will oversee banks’ contingency plans and "assess the financial stability implications of firms' plans to adapt" to Brexit.
It warned that any sudden changes could "disrupt the provision of market liquidity and investment banking services, particularly to the EU real economy, which could spill back to the UK economy through trade and financial linkages".
0 comments: