BoE's Bailey warns bank chiefs on Brexit - report

The Governor of the Bank of England has told bank bosses to step up preparations for the UK failing to agree a trade deal with the EU, according to a report.

In his weekly call with UK commercial bank chiefs Andrew Bailey told them to accelerate preparations for the UK and the EU not agreeing a deal by the end of Brexit transition period, Sky News reported. Brexit was the top item on the agenda on the call with executives from Barclays, HSBC, Lloyds and Royal Bank of Scotland, Sky said.

Bailey's remarks led one bank boss to conclude that the BoE was more pessimistic about the prospect of a trade deal between the UK and EU. Talks between the two have shown little progress and have been delayed by the Covid-19 crisis with the deadline for ratification looming at the end of December.

The BoE told Sky: "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.

"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."