"The Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward."
- Carney
The Bank of England said it is also able to "provide substantial liquidity in foreign currency, if required" and will be considering "additional policy responses" in the coming weeks.
Carney said: "We expect institutions to draw on this funding if and when appropriate, just as we expect them to draw on their own resources as needed in order to provide credit, to support markets and to supply other financial services to the real economy."
Carney reassured that "the Bank will not hesitate to take additional measures as required as those markets adjust and the UK economy moves forward".
He admitted that "some market and economic volatility can be expected as this process unfolds", but that the Bank is well prepared.
Carney revealed that the Treasury and the Bank of England "have engaged in extensive contingency planning and the Chancellor and I have been in close contact, including through the night and this morning".
He added that the capital requirements of the UK's largest banks are now ten times higher than before the crisis, and that the Bank of England has stress tested them against scenarios "more severe than the country currently faces".
As a result of these actions, he said that UK banks have raised over £130bn of capital, and now have more than £600bn of high quality liquid assets, which will give banks the "flexibility they need to continue to lend to UK businesses and households, even during challenging times".
The Bank had already judged that the risks around the referendum were the "most significant, near-term domestic risks to financial stability" and put in place contingency plans which it says will now support "orderly market functioning in the face of any short-term volatility".
Going forward, Carney says the Bank will continue to consult and cooperate with domestic and international authorities to ensure that the UK financial system can absorb any stresses and can concentrate on serving the real economy.
