Brexit: Bank of England talks of 'disruption' in financial services in new year

The Bank of England on Friday said that financial service faced 'some disruption' when the transition period for Brexit ends at the end of this month. Although the Bank of England said that banks in UK were resilient to the risk of Brexit and coronavirus, the warning given by the bank is likely to be noted in the financial world.

Bank of England's Financial Policy Committee, which is tasked with safeguarding the financial system added that major British banks were capable of absorbing USD 266 billion (200 billion Pounds) in credit losses.

Britain and the European Union are still locked in negotiations over Brexit trade deal. The negotiations have not made much progress. Both sides have kept a deadline ending this Sunday (December 13)

On Friday, UK Prime Minister Boris Johnson said that a no-deal Brexit was a possibility although he vowed to explore all ways to strike a trade deal.

After a meeting with his senior ministers, Johnson said the treaty on the table did not work for Britain.

"We need to be very, very clear there's now a strong possibility, strong possibility that we will have a solution that's much more like an Australian relationship with the EU, than a Canadian relationship with the EU," Johnson said.

Australia does not have comprehensive trade deal with EU. Although Australia's trade with EU is just fraction of that of Britain, Johnson apparently is drawing simile to suggest that a deal was not necessary.

Negotiations between UK and the EU are stuck over fishing rights, competition rules and economic fair play.