BOE Says Brexit Preparedness Has Improved, Some Risks Remain

The transcript discusses the increased likelihood of a no-deal Brexit and the associated risks to UK financial stability. While many risks have been mitigated, some disruptions to cross-border financial services remain possible, primarily affecting the EU. The UK financial system is deemed resilient, with major banks maintaining strong capital levels and liquidity. However, market stability is not guaranteed, and asset prices may adjust sharply in a disorderly Brexit. The FPC is prepared to cut the countercyclical capital buffer to support lending if economic stress materializes.

What is the significance of the Bank of England's 2018 stress test results?

In what ways could a disorderly Brexit affect UK asset prices?