BoE admits it has 'not agreed on everything' in EU Brexit talks

Cunliffe, who is also a member of the Monetary Policy Committee, Financial Policy Committee and and Prudential Regulation Committee, said the Bank has been working with the ECB and other EU authorities to identify and mitigate risks.

However during a speech in London yesterday, Cunliffe said "we have not, to be frank, agreed on everything and there remain areas of potential disruption that... need to be addressed".

He added that action has been taken on most of the main financial stability risks, but that the main risk is "the general economic impact of a disorderly Brexit upon the financial system".

Cunliffe warned that in the event of a no-deal, no transition Brexit, "markets would be likely to be very volatile – as they were after the referendum - as prices adjust to that outcome".

He continued: "The banking system has the ability to withstand the losses that would accompany a serious downturn – but one would still expect there to be losses. And, of course, while we have addressed all of the risks we can foresee, stress events can evolve and combine with other events in unpredictable ways."

Cunliffe concluded by outlining the risks that may arise from the UK's future relationship with the EU, stating: "It will need to balance very different economic and social objectives on which views are, as we have seen in recent months, very divided.

"At some point, post Brexit, we will, I think, need to address this rigidity and hard wiring of detail to ensure we have a coherent, effective and flexible regulatory system with appropriate accountability. How we do that will have an impact on how we address risks, at firm and at system level, in a fast changing financial system."