BOE's Carney on a Disorderly Brexit

The video discusses the need to consider multiple economic scenarios, particularly in the absence of an agreement. The committee has analyzed potential challenges, including the shift to WTO trade rules, which could lead to tariff impacts and loss of authorization for services, especially financial ones, in the EU. Logistical issues, such as airline and customs challenges, are also considered. The discussion extends to the crystallization of cross-cutting issues like derivatives, leading to risk premiums in markets. The video concludes with an assessment of these factors within the stress test framework, providing an outer boundary for potential losses.

What risks are associated with financial services in the EU due to UK-based entities?

What does the term 'stress test' refer to in the context of the losses discussed?