Bank of England Governor Andrew Bailey tells banks to ramp up plans for a no-deal Brexit

Bank of England Governor Andrew Bailey has told banks to ramp up their no-deal brexit plans as the UK increasingly looks likely to crash out of the bloc.

In a call yesterday with the UK's top bank bosses he warned that they needed to be ready should the UK and EU fail to strike a trade deal.

The UK left the EU in January and a transition period ends on December 31.

After that, without a preferential deal, British banks, insurers and asset managers will be limited to the kind of access given by the bloc to the United States, Japan and Singapore.

In a statement the Bank of Engalnd said: "It is fundamental to the Bank of England’s remit that it prepares the UK financial system for all risks that it might face. In performing that role, the Governor meets the leadership of UK banks on a very regular basis. As we have said previously, the possibility that negotiations between the UK and EU over a future trading relationship might not conclude in a deal is one of a number of outcomes that UK banks need to prepare for over the coming months."

Financial services minister John Glen said yesterday that the country’s financial services industry was “world class” and ready for whatever Brexit outcome.

“I continue to believe that we are still well placed as a sector, whatever the specific outcomes are of negotiations ahead of us in the second half of this year,” he said.