By Jason Douglas

LONDON--Bank of England Gov. Mark Carney said Tuesday that Britain's financial sector would benefit from a period of transition between Britain's formal exit from the European Union and the adoption of a new trading relationship with the bloc.

In testimony to lawmakers, Mr. Carney said that big financial reforms or new trade deals usually take several years to fully implement and that it would be "in the interests" of the financial sector if the U.K. and the EU agreed a transition period following two years of exit talks, scheduled to begin by the end of March.

Mr. Carney said financial firms are making contingency plans for Britain's looming exit but in most cases are holding off onimplementing them until Britain's post-EU future is clearer.

"Planning makes sense. Action is in most cases, in general, is precipitate," Mr. Carney said.

Write to Jason Douglas at jason.douglas@wsj.com

(END) Dow Jones Newswires

November 15, 2016 06:53 ET (11:53 GMT)

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