The Bank of England is pushing ahead with plans for transitional arrangements after Brexit negotiations in an attempt to protect financial institutions from a cliff edge deal that could undermine their stability.
Governor Mark Carney has met senior figures in the City to stress the need for a smooth path out of the European Union that maintains its stature and strong links with the continent.
The meetings followed his submissions to the Treasury select committee that outlined his view that banks and other financial institutions would need to be given time to put new rules in place after a deal had been struck with Brussels.
The Confederation of British Industry and the British Bankers Association have lobbied No 10 and No 11 to impress on the prime minister and chancellor that transition arrangements would be needed or firms could face a barrage of new tariffs and trading relationships.
Banks are concerned “passporting” agreements that …