(Bloomberg) -- The governor of the Bank of England, Andrew Bailey, has warned lenders of the challenges negative interest rates would bring, the Sunday Times reported.
Bailey said in a letter sent last month that adapting to a move into negative territory would be a “significant operational undertaking for firms,” according to the newspaper.
He said many would need a year to alter computer systems, update contracts designed for an environment of positive rates and work out how to communicate with clients, the Times reported.
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The letter is a sign that the bank is preparing the City for the possibility of a shift into negative territory for the first time in its 325-year history, the newspaper said.
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