BoE's Carney: UK Needs to Stay Open to Avoid Financing Trouble

BoE's Carney: UK Needs to Stay Open to Avoid Financing Trouble

However, material risks of economic disruption remain.

Britain should do what it can to remain attractive to the global investors who fund its large current account deficit, potentially one of the economy's major vulnerabilities, Bank of England Governor Mark Carney said on Thursday.

The Bank of England has sounded the alarm over the risks to City banks from no-deal Brexit, warning that companies across Europe could be cut off from their lenders overnight.

Patel said: "It is also notable that where the November stability report points to broad resilience across the banking sector, it is now speaking only about major banking institutions".

"There's a few orderly transitions and one of them is an orderly (Brexit) transition through October 31 and an orderly transition to my successor, and of course I'll make sure that that is the case". "There's a process to confirm [Lagarde at the European Central Bank] and then there's a process to select her successor".

The process to pick a new International Monetary Fund managing director "should be open, transparent and merit-based, so there´ll come a time when that process launches, and that´s probably the right time to answer that question".

Rising trade tensions have raised risks to the global outlook.

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Mr Carney said: "There will come a time when that (recruitment) process launches and it's probably the right time to answer that question".

"This is not learning on the job stuff", the chief United Kingdom central banker said at a press conference on Thursday.

"Fundamentally there's issues around any money laundering and counter-terrorism financing".

"Well-managed firms are expected to lead the transition and re-negotiate their contracts to refer to alternative reference rates well in advance of the end of 2021".

Britain runs a large current account deficit with the rest of the world, and BoE Governor Mark Carney has previously warned that the country relied on "the kindness of strangers", which could evaporate during market tensions.

Prime Minister Theresa May has repeatedly failed to get parliament's backing for her plan to ensure a smooth exit from the European Union, and the two main contenders to succeed her have said Britain may need to leave without a deal.

The new report comes just a day after analysis from the Department for the Economy warned that a no-deal Brexit could risk 40,000 jobs in the north, result in the crash of cross-border agri-food trade and a slump in investment from foreign companies.

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