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Treasury Committee chair Nicky Morgan presses Bank of England on Brexit readiness

Treasury Committee chair Nicky Morgan presses Bank of England on Brexit readiness
2 min read

Treasury select committee chair Nicky Morgan has called on the Bank of England to provide details of how prepared banks and insurance firms are for Brexit.

In one of her first moves since taking on the high-profile role, the former cabinet minister has written to the bank's Prudential Regulatory Authority about the key risks of a "no deal" outcome.

Ms Morgan, a staunch Remain backer and latterly supporter of staying in the European single market has asked PRA head Sam Woods to reply by tomorrow.

The former minister acknowledged the “cause for concern” of a “cliff-edge” for the financial sector, adding that reaching a desirable arrangement was necessary to protect the City’s “pre-eminence as a global financial centre”.

In her letter, she said: “The cliff edge facing businesses in April 2019 is a cause for concern, particularly in the financial services sector. Based on the information the PRA [Prudential Regulation Authority] has collected, I have asked Sam Woods about how banks and insurers will respond as the Brexit deadline approaches, and the key risks of a ‘no deal’ scenario.

“I have also asked Mr Woods for his views on the desirability and design of a transitional arrangement with the EU, to provide more time to negotiate and prepare for a new UK-EU economic relationship.

“Getting these arrangements right will be crucial for ensuring that the City retains its pre-eminence as a global financial centre, and to protect the economy and jobs as the UK leaves the EU.”

In April, the PRA asked all the firms it regulated for a summary of their contingency plans for the UK's exit from the EU, with a deadline of 14 July.

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