The UK’s banking sector are prepared to weather serious economic shocks and can continue to lend during the pandemic, the Bank of England has said.
“Financial sector preparations for the end of the transition period with the EU are now in their final stages,” the Bank’s report said.
“Most risks to UK financial stability that could arise from disruption to the provision of cross-border financial services at the end of the transition period have been mitigated.”
However, it added: “Financial stability is not the same as market stability or the avoidance of any disruption to users of financial services. Some market volatility and disruption to financial services, particularly to EU-based clients, could arise.”