'Pressing' action needed to avoid financial services disruption: BoE

In its latest meeting, the FPC said that there had been "considerable progress" in the UK to address risks associated with a no-deal Brexit, "but only limited progress in the EU".

It now believes that in the limited time remaining, it is not possible for companies on their own to mitigate fully the risks of disruption to cross-border financial services.

The FPC says "timely action" by EU authorities is needed, particularly relating to derivative contracts and the transfer of personal data.

The Bank reiterated concerns by the UK government that in the absence of action by EU regulators, Britons living in the EEA could lose access to UK banking services.

The Policy Committee said that EU or member state rules might prevent UK insurance companies collecting premiums from, or paying claims to, their 38 million policyholders in the EU.

However it believes most UK insurance companies are making good progress in restructuring their business in order to serve their EU customers after Brexit.

Despite ongoing risks, the FPC judged that the UK banking system would be strong enough to serve UK households and businesses, even through a 'disorderly, cliff-edge Brexit'.