LONDON - The Bank of England declared Britain’s financial system to be ready for the volatility that would be unleashed by a no-deal Brexit, but households and companies in the rest of Europe might face disruption.
With Brexit due to happen on March 29, British Prime Minister Theresa May is holding out for further concessions from Brussels although she has also opened up the possibility of a delay to Britain’s exit from the EU. There was a risk that problems in Europe could have a knock-on effect in Britain, the BoE’s Financial Policy Committee said in a statement published on Tuesday.
The British central bank also said EU banks and insurers might have less appetite for UK government bonds and bank debt if Britain leaves the bloc without a deal, due to tougher capital rules by EU regulators.