Bank of England urged to share Brexit plan details

Nicky Morgan was appointed Treasury select committee chairwoman earlier this month

The Bank of England has been urged to share details of how prepared banks and insurance firms are for Brexit.

Newly-appointed Treasury select committee chairwoman Nicky Morgan demanded the information, in one of her first moves since taking on the role.

In a letter to the bank's Prudential Regulatory Authority, she asked for the key risks of a "no deal" scenario.

Sam Woods, the head of the body, which regulates banks and insurers, has been asked to reply by 2 August.

"The cliff edge facing businesses in April 2019 is a cause for concern, particularly in the financial services sector," Ms Morgan said, commenting on the letter.

In April, the PRA asked all the firms it regulated for a summary of their contingency plans for the UK's exit from the EU.

The firms had until 14 July to respond.

'Grateful for details'

Ms Morgan wrote in the letter that she "would be grateful for some details on the outcome of this exercise".

She said there was no need to disclose "any firm-specific information", but asked whether all firms had responded to the request.

Ms Morgan also asked for the PRA's assessment of how prepared the firms it regulated were for a no deal scenario.

Commenting on her letter, Ms Morgan added: "I have also asked Mr Woods for his views on the desirability and design of a transitional arrangement with the EU, to provide more time to negotiate and prepare for a new UK-EU economic relationship.

"Getting these arrangements right will be crucial for ensuring that the City retains its pre-eminence as a global financial centre, and to protect the economy and jobs as the UK leaves the EU."

Many businesses have expressed fears over a sudden change in rules once the UK leaves the EU.

Business lobby groups, including the CBI and the British Chambers of Commerce, have pushed for an interim deal to let them trade in the same way post-Brexit.

Former education secretary Ms Morgan replaced long-running Treasury select committee chairman Andrew Tyrie earlier this month.