Strong

He said: “Brexit developments are taking place against a backdrop of increasing risk to the global economic outlook.

“Even if a protectionist-driven global slowdown were to spill over to the UK at the same time as a worst-case disorderly Brexit, the Financial Policy Committee judges the core UK banking system would be strong enough to absorb, rather than amplify, the resulting economic shocks.”

The bank’s latest report warned that EU authorities still needed to take further action to help protect against some risks, particularly ensuring banking services between UK and EU banks remain in place after Brexit.

It said half of all clients of major UK banks had not completed the necessary paperwork for EU derivative trades.