Brexit will create so much cross-Channel complexity for the finance sector there is "material risk" the Bank of England's stability watchdog might not cope, according to its chief executive.

Sam Woods, who is a deputy governor of the Bank and leads its Prudential Regulation Authority, has warned that "the authorisation, and then the ongoing supervision, of a significant number of additional firms" as a result of the UK's exit from the European Union was "likely to place a material extra burden on the PRA's resources".