In a conference call with bank chief executives on Tuesday, Bank of England governor Andrew Bailey said they should step up plans for a no-deal in trade talks between Britain and the European Union, according to Sky News.

The UK formally left the EU on 31 January but both sides need to agree on a post-Brexit trade deal during the transition period, which lasts until 31 December 2020.

Boris Johnson has ruled out seeking an extension to the transition period.

Any request for a one-year or two-year extension needs to be lodged by the end of this month.

Sky reports suggest executives from Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland were on the call with Mr Bailey.

In a statement, the Bank of England said: “It is fundamental to the Bank of England’s remit that it prepares the UK financial system for all risks that it might face.

“In performing that role, the Governor meets the leadership of UK banks on a very regular basis.

“As we have said previously, the possibility that negotiations between the UK and EU over a future trading relationship might not conclude in a deal is one of a number of outcomes that UK banks need to prepare for over the coming months.”