Bank of England Governor Andrew Bailey has warned that banks will have to escalate their no-Brexit plans as UK increasingly looks likely to crash out of the bloc.
The UK left the EU in January and a transition period ends on December 31.
In a call yesterday with the UK’s top bank bosses he warned that they needed to be ready should the UK and EU fail to strike a trade deal.
After that, without a preferential deal, British banks, insurers and asset managers will be limited to the kind of access given by the bloc to the United States, Japan and Singapore.
Financial services minister John Glen said yesterday that the country’s financial services industry was “world class” and ready for whatever Brexit outcome.
“I continue to believe that we are still well placed as a sector, whatever the specific outcomes are of negotiations ahead of us in the second half of this year,” he said.