Financial firms must “speed up” contingency plans in the event of Britain exiting the European Union without a deal, the bloc’s banking watchdog warned on Monday. The European Banking Authority said it was “imperative” that the bloc’s financial institutions “identify potential exposures and risk channels that may be affected, and the possible implications of the potential departure of the UK without a ratified withdrawal agreement in place”.
It comes as IMF head Christine lagarde spoke of the “critical” importance of continental Europe having necessary regulations in place “for the influx of financial firms” from the UK. There is growing concern that Britain could next year leave the EU without a deal, as tough Brexit negotiations stall in regards to the border between Northern Ireland in the UK and Ireland.
EBA chairperson Andrea Enria said “firms cannot take for granted that they continue to operate as at present nor can they rely on as yet unrealised political agreements or public policy interventions”.