(Bloomberg) -- The Bank of England has taken the necessary steps to prepare the U.K. banking system for the potential turmoil of a no-deal Brexit, Governor Mark Carney said.
“We’ve been preparing for it since the day after the referendum effectively,” Carney told lawmakers in London. “We’re quietly confident that we have in place all the measures we could have in place.”
Carney said on Tuesday that the U.K. Parliament had “acted with alacrity and responsibility” on key legislation needed to avert the cliff-edge risks posed by a disorderly divorce. U.K. regulators have been warning for more than a year that a no-deal Brexit with no transition period could threaten trillions of dollars of derivatives contracts and millions of insurance policies.
The BOE on Nov. 29 will provide Parliament with an analysis of how the draft withdrawal agreement will affect the central bank’s ability to deliver on its mandates for monetary policy and financial stability. The BOE brought forward the publication of the 2018 stress-test results by a week to Nov. 28, because its Brexit analysis draws on these results.
Carney said these reports “will provide as much information as is needed to make judgments about the capital-liquidity position of the core of the banking system.”