Bank of England and ECB set up group to address Brexit fears

Committee will assess potential financial disruption if Britain leaves EU without deal

The financial disruption that could result if Britain leaves the European Union without a deal is to be examined by the Bank of England in a joint working group with the European Central Bank.

Intense lobbying by banks and insurance companies in the City, fearful that billions of pounds' worth of cross-border financial contracts would lose their legal status if negotiations failed, appeared to have succeeded when EU officials agreed that the ECB would join Threadneedle Street officials to assess the risks.