Bank of England warns Brexit risks beginning to crystallise
The Bank of England has warned there is evidence that risks it identified related to Brexit are emerging.
In a major report it states: "There is evidence that some risks have begun to crystallise. The current outlook for UK financial stability is challenging."
The Bank has eased special capital requirements for banks, potentially freeing up £150bn for lending.
Eight major banks have also agreed with George Osborne to provide more lending to households and businesses.
The chancellor signed a letter with Barclays, HSBC, Santander UK, Virgin Money, Metro Bank, RBS, Nationwide and Lloyds for the banks to make extra capital available in this "challenging time".
The Bank's change to capital buffers could help if uncertainty from the leave vote causes the economy to slow down and banks to be more cautious.
"This is a major change," said Bank of England governor Mark Carney.
"It means that three-quarters of UK banks, accounting for 90% of the stock of UK lending, will immediately - immediately - have greater flexibility to supply credit to UK households and firms," he said.
Mr Carney was speaking at a news conference following the release of the bank's six monthly Financial Stability Report.