21 December, 2017
But it should be over by the end of December 2020.
"Encouraging EU banks to continue to operate in the United Kingdom will help preserve financial stability for the United Kingdom and the EU and will help defend London's position as an open global financial centre", said Miles Celic, head of the lobbying group TheCityUK.
In response to Barnier's warnings to the City, Carney said: "I don't accept the argument that just because it hasn't been done in the past, it can't be done in the future".
The central bank said it made the decision on the assumption that a "high degree of supervisory co-operation with the EU" would continue after Britain leaves the bloc.
Chief EU negotiator Michel Barnier clarifies that the transition period will not be an "a la carte" for Britain to choose from.
But the precise terms of the transition phase are the subject of the next set of negotiations.
Over a hundred banks in London, which are branches of lenders headquartered elsewhere in the European Union, operate under European Union "passporting" rules and are uncertain whether they can still do business in Britain after it exits the bloc in March 2019.
Some flights cancelled from United Kingdom to Ireland due to snow
Scotland's Edinburgh airport also cancelled seven flights while Manchester reported that 13 flights were called off. British Airways was worst affected, with 24 long-haul departures cancelled as well as dozens of short-haul flights.
Comedian Hannibal Buress arrested on disorderly conduct charges
Buress' fans on Twitter had many strong reactions to the comedian's arrest, including tweets declaring, "Free Hannibal Buress ". The video, which went viral last night and sparked the #FreeHannibalBuress tag, raises some unanswered questions for MPD.
Mrs May told the Cabinet she was seeking "a significantly more ambitious deal than the EU's agreement with Canada", her spokesman said.
Eurosceptic hardliners in May's Conservative party have insisted that Britain should take back control of its borders and no longer be subject to the European Court of Justice from March 2019 onwards.
This is slightly shorter than the 2-year transition that was thrown in the air.
International Monetary Fund chief Christine Lagarde said in London on Wednesday that Britain's economy was "losing out" as a result of last year's vote to leave the European Union, but that any post-Brexit trade deal could help ease the pain.
There were fears that forcing European Union banks to go through such an expensive process would put them off operating in Britain after March 2019, which could lead to London losing its crown as Europe's financial centre.
May has already accepted in theory that the ECJ will continue to have jurisdiction and that London will have no legal basis to conclude its own trade deals during transition the period.
Leading conservative lawmaker Jacob Rees-Mogg slammed this demand as "rather hostile", leaving the United Kingdom "no more than a vassal state, a colony, a serf of the European Union".