The German financial sector expects a No Deal Brexit and does not believe the European Union should make any further concessions to the UK to prevent one, a respected survey has found.

The mood among German bankers and financial service providers has hardened considerably, according to findings released on Monday by Frankfurt University’s Center for Financial Studies (CFS).

The study, carried out since Boris Johnson became Prime Minister, found that 86 per cent of senior executives in the German financial sector now expect No Deal.

But the findings will make troubling reading for anyone hoping that German business will put pressure on Angela Merkel’s government and the EU to back down in the face of Mr Johnson’s hardline approach.

An overwhelming 70 per cent of those polled said they believe the EU should not make any further concessions in order to prevent No Deal.

That is despite the finding that 61 per cent of those surveyed believe the financial markets have not yet effectively factored in the risk of No Deal and could suffer a considerable shock.