Governor of the Bank of England Mark Carney | Pool photo by Niklas Halle'n/AFP via Getty Images Mark Carney: Brexit no longer biggest UK financial threat

Brexit is no longer the biggest risk to the U.K.'s financial stability, Bank of England Governor Mark Carney said.

Speaking before the House of Commons' Treasury Select Committee at his first hearing of the year, Carney said that as things currently stand, "financial stability risks around [the EU exit] process are greater on the Continent than they are in the U.K."

According to the governor this is because there is a "tremendous" financial services capacity in Britain and even though there will be shortfalls at the point of leaving, these are "more likely to affect Europe."

Although the BoE had indicated before the June 23 EU referendum that leaving the bloc was the biggest short-term risk to the U.K.'s financial stability, Carney explained that the view has now changed because the country was able to cope with the vote result, partly thanks to the contingency steps taken by the central bank.

"We got through the night and the day after ... the scale of the immediate risks around Brexit has gone down for the U.K.," he said.