British banks have begun making preparations for the possibility of the eurozone breaking up in the near future.
That is according to Andrew Bailey, deputy head of the Financial Services Authority's prudential business unit and an executive director at the Bank of England (BoE), who believes financiers are starting to put together contingency plans for the worst case scenario.
Several member states of the region are currently caught in the mire of excessive debt - something that has raised concerns about the dissolution of the eurozone.
"Good risk management means planning for unlikely but severe scenarios ... I offer no view on whether it will happen, but it must be within the realm of contingency planning," Mr Bailey noted.
This comes after his colleague David Miles, a member of the BoE's Monetary Policy Committee, told ITV News there is a real possibility that some countries may have to leave the eurozone in the coming months.
By Tony Aynsley