Banks ready for No Deal

THE risk of a No Deal Brexit is rising, the Bank of England has warned – but the financial system is strong enough to withstand any disruption.

Investors believe there is a growing chance Britain will leave the European Union with no agreement in place, the Bank said.

Most economists expect this would lead to a sharp fall in the pound and major sell-offs on the markets.

But in its latest Financial Stability Report, the Bank said Britain’s finance firms will be able to carry on lending to companies and the public even if No Deal triggers huge turmoil. Firms would be able to keep operating even if a global trade war led by President Trump escalates, it says.