Quitting the EU poses the "biggest domestic risk to financial stability", Bank of England boss Mark Carney has warned.
The stark assessment by the governor came amid strongly-worded exchanges during the lengthy Westminster hearing with a leading eurosceptic, who accused him of making pro-EU comments.
In response, Mr Carney, who had emphasised the bank's impartiality in the debate, said the claims were "entirely unfounded" and said Tory MP Jacob Rees-Mogg had a "selective memory".
During the hearing, Mr Carney said Brexit could trigger a long period of financial and economic instability, but refused to take sides in the forthcoming EU referendum.
Mr Carney gave evidence to the Treasury Select Committee after the Bank announced it was putting in place precautions to ensure markets kept working smoothly around the time of the vote, by giving lenders access to extra cash if needed.
The committee also released, ahead of its questioning of Mr Carney, the text of a letter in which the Bank set out its views on how its statutory objectives were affected currently by the EU and how this might change should Brexit be supported.
It essentially said that remaining inside meant the UK was more dynamic but integration left the country more vulnerable to financial shocks - the same position it adopted last year.
But it also commented on Prime Minister David Cameron's deal with EU leaders - an agreement that secured the PM's own support for remaining in the EU.
In remarks likely to be cheered by the 'Remain' camp, the Bank's letter said: "The settlement addresses the issues the Bank identified as being important, given the likely need for further integration of the euro area, to maintaining its ability to achieve its objectives".
Mr Carney also told the committee some banks could abandon London as a headquarters in the event of a vote to leave, saying "one would expect some activity to move".
He added: "I'd say a number of institutions are contingency planning for that possibility".
At one stage, the governor was accused by one committee member and 'Leave' campaigner, Tory MP Jacob Rees-Mogg, of "coming out with the standard statements of the pro-EU group".
The row centred on Mr Carney's case, which he said was "arguable" and not conclusive, that the growth of UK trade with the rest of Europe has been greater because of the single market.
Mr Carney denied any suggestion of bias towards EU membership, telling the MP "I'm not going to let that stand".
He acknowledged that remaining inside the EU carried risks as well, including greater regulation and the possibility that the euro members increased integration, leaving the UK on the sidelines.
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