"The FPC continues to judge that its 2018 stress test of major United Kingdom banks was sufficiently severe to encompass the wide range of United Kingdom economic and financial shocks that could be associated with Brexit", the FPC said.
Financially speaking, a no-deal Brexit will lead to a situation in which the British economy would shrink by 4.7 percent, its unemployment rate would rise to 9.5 percent and property prices would fall by an estimated 33 percent.
"Even if a protectionist-drive global slowdown were to spill over to the UK at the same time as a worst-case disorderly Brexit, the core UK banking system would be strong enough to absorb, rather than amplify, the resulting economic shocks and continue to serve UK households and businesses", it said.
That convention has come under strain in recent years from developing economies demanding a greater say at the Washington-based institutions, although the American David Malpass was elected unopposed in April to head the World Bank. Nonetheless, UK banking system remains resilient to those global risks, the FPC added.
Quilter Investors portfolio manager Hinesh Patel pointed out that the BoE "has made a point of explaining that this only means there is a satisfactory level of resilience in the system to withstand turbulence, and that this should not be confused with the expectation of a benign response in the markets".
Other names in the mix include Bank of France governor Francois Villeroy de Galhau, EU finance commissioner Pierre Moscovici of France, and former British finance minister George Osborne. However, material risks of economic disruption remain.
"Cannot fully insulate ourselves from financial spillovers from Europe in case of no-deal Brexit".
The report also revealed the Bank is launching a review of funds like Neil Woodford's suspended equity income fund.
It will look at potentially imposing restrictions that could ban funds invested in illiquid assets from offering short term notice periods.
"That starts with the macroeconomic framework. and that openness to trade and investment which has been a hallmark of this economy".