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Jonathan Stephen Cunliffe, Deputy Governor of the Bank of England for Financial Stability, recently crossed the wires saying that an “extremely disorderly Brexit” was the biggest risk facing the UK financial sector while explaining that although they didn’t expect a hard Brexit, it would certainly lead to a drop in asset prices and result in large losses for banks.

Key quotes (via Reuters)

  • Level of debt in the UK economy is high, but may be more sustainable than in past || international asset prices are high and vulnerable to repricing.
  • Mortgage demand may be constrained by Brexit uncertainty, could rebound when outlook clearer.