Commenting on the publication of the Bank of England’s Financial Stability Report today, City of London Corporation Policy Chair Catherine McGuinness said:

“While we welcome the Bank of England’s assessment that the UK banking industry is resilient enough to withstand a disorderly Brexit, there is still much cause for concern. Material risks include the threat of ‘significant market volatility’, which could cause economic turmoil in the UK and beyond. While the sector is prepared, the worst impacts can only be mitigated, not avoided, by preparation. In addition to industry action, there is a need for government to take steps to prevent cliff-edge damage.

“This should be a wake-up call for Westminster. We are now just over three months away from the next Brexit cliff-edge and the risk of no-deal is drawing dangerously close. As every day passes, the crippling uncertainty that is holding business hostage remains, leaving companies unable to make everyday decisions. This has been demonstrated in recent data covering the services sector.

“The clock is ticking. Politicians on all sides must now come together to agree a pragmatic solution to Brexit and make avoiding a no-deal Brexit the absolute priority.”

Notes to editors

The City of London Corporation is the governing body of the Square Mile dedicated to a vibrant and thriving City, supporting a diverse and sustainable London within a globally-successful UK. www.cityoflondon.gov.uk