June 3, 2020 / 10:46 AM / a month ago

BoE says advising banks to prepare for possible no-deal Brexit

FILE PHOTO: A general view of The Bank of England and the Royal Exchange as the spread of the coronavirus disease (COVID-19) continues, in London, Britain, March 19, 2020. REUTERS/Hannah McKay

LONDON (Reuters) - The Bank of England said it had been advising banks to prepare for the possibility that Britain fails to reach a post-Brexit trade deal with the European Union before a deadline at the end of 2020.

“As we have said previously, the possibility that negotiations between the UK and EU over a future trading relationship might not conclude in a deal is one of a number of outcomes that UK banks need to prepare for over the coming months,” the BoE said in a statement.

Sky News reported earlier on Wednesday that BoE Governor Andrew Bailey had told banks to step up their no-deal planning.

“It is fundamental to the Bank of England’s remit that it prepares the UK financial system for all risks that it might face. In performing that role, the governor meets the leadership of UK banks on a very regular basis,” the central bank said.

Writing by William Schomberg, editing by Andy Bruce

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