According to a new report published by the Bank of England, the result of the recent US presidential election has “reinforced existing vulnerabilities in the UK financial system”.

It adds that the outlook for financial stability in the UK remains “challenging” because of global risks.

In its first official statement on the consequences of Donald Trump’s election victory last month, the Bank said that future policies concerning trade agreements could lead to a slowdown in world trade, which would, in turn, adversely affect the UK.

Mr Trump has said, on a number of occasions, that he intends to impose stronger tariffs on Chinese imports and scrap certain trade deals, including the Trans-Pacific Partnership.

At a press conference held on 30 November to unveil the latest twice-yearly Financial Stability Report, a Bank of England spokesman said: “There is a possibility that the slowdown in the growth in world trade, which we have seen over the past few years, accelerates because of discrete policy initiatives, potentially from the world’s largest economy.”

The report goes on to argue that if financial companies decide to leave London in the wake of the UK’s EU referendum vote, it could destabilise not only the UK but also Europe.

The Bank says that it is “imperative that British businesses know as much as possible, as early as possible” about the transition arrangements concerning Brexit and the level of access to the EU’s internal market following the referendum.