Reuters reports that the Bank of England took steps to keep banks lending through 2021, saying it was ready to deal with any market disruption from a big change in the UK's trading relationship with the European Union.

Governor Andrew Bailey said Britain had done all it can to mitigate risks from a no-deal departure from the EU on Dec. 31, and it was ready to deal with any disruptions to financial markets.

"What has the Bank of England got in its armoury, as it were? The answer is a lot. We will use our tools, as we did in March, should we be in that situation," Bailey told.

Market disruptions would not threaten financial stability, but Bailey warned that some EU customers might not be able to get access to UK financial services because the EU has not taken mitigating action.

"There is a limit to what we can do," Bailey said.