BoE's Bailey says geopolitics and trade tensions pose financial risks

LONDON, Jan 20 (Reuters) - Bank of England Governor Andrew Bailey said on Tuesday that the level of geopolitical uncertainty and global trade tensions represented a big ?consideration for the central bank as it seeks to ?manage risks to the economy from the financial ?system.

"I do think that geopolitical ?tensions and ?trade, particularly trade issues are an important part of that (rise ?in risks to financial ?stability last year)," Bailey told lawmakers on parliament's Treasury Committee.

Asked about how ?concerned the BoE was ?about ?U.S. President Donald Trump's pursuit of Greenland and trade tensions, he said he did ?not want to say that specific issues could be a trigger for upheaval in the financial system.

"But the level of geopolitical uncertainty and the level of geopolitical issues ?is ?obviously a big consideration because they can have financial stability consequences," Bailey said.

He ?also reiterated his concern about the independence of the U.S. Federal Reserve whose chair Jay Powell was the subject of a Department of Justice subpoena earlier this month over a Fed building renovation ?project.

Bailey said there were substantial potential spillovers for Britain from any threat to Fed independence.

(Reporting by David Milliken, ?writing by Suban Abdulla; editing by William Schomberg)