Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex  >  All News

News : Economy & Forex
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies / ForexCryptocurrenciesEconomic EventsPress releases

Bank of England tells banks to be ready for no-deal Brexit

share with twitter share with LinkedIn share with facebook
share via e-mail
06/03/2020 | 07:41am EDT
FILE PHOTO: Bank of England Governor Andrew Bailey poses for a photograph on the first day of his new role at the Central Bank in London

Banks should prepare for the possibility of a no-deal in post-Brexit trade talks between Britain and the European Union, the Bank of England said on Wednesday.

Britain left the EU in January but is covered by a transition period that is due to end on Dec. 31. Talks on a future trading relationship between Britain and the EU entered a fourth round this week.

"It is fundamental to the Bank of England's remit that it prepares the UK financial system for all risks that it might face," the BoE said in a statement.

BoE Governor Andrew Bailey held a conference call on Tuesday with Britain's biggest banks in which he emphasised the need to step up their plans for a no-deal Brexit, Sky News reported earlier on Wednesday.

The BoE said it meets the leadership of UK banks on a very regular basis.

"As we have said previously, the possibility that negotiations between the UK and EU over a future trading relationship might not conclude in a deal is one of a number of outcomes that UK banks need to prepare for over the coming months," the BoE said.

Barclays and RBS declined to comment. HSBC and Lloyds were not immediately available for comment.

Britain wants binding commitments from the EU on financial market access to avoid the country's finance industry suddenly being cut off from the bloc, which is a major export market for British financial services.

But the EU has said that British banks, insurers and asset managers face the limited kind of access given by the bloc to the United States, Japan and Singapore.

Senior sources at two major banks told Reuters they had been preparing for a long time to cope with a no-deal Brexit from an operational perspective, after relocating UK-based staff and management to new offices in the EU.

Britain's financial services minister John Glen said on Wednesday that the country's financial services industry was "world class" and was ready for whatever Brexit outcome.

"I continue to believe that we are still well placed as a sector, whatever the specific outcomes are of negotiations ahead of us in the second half of this year," he said on a webinar.

Britain still expects to secure a comprehensive free trade agreement with the EU, Glen said.

A senior EU official said last week that Britain's financial services sector should be ready for a no-deal Brexit.

(Writing by William Schomberg, Huw Jones, Sinead Cruise and Iain Withers, editing by Andy Bruce and Jane Merriman)

Stocks mentioned in the article
ChangeLast1st jan.
ACCESS CO., LTD. 0.86% 940 End-of-day quote.-1.57%
AMP LIMITED 0.57% 1.755 End-of-day quote.-8.36%
BARCLAYS PLC 0.79% 120.3 Delayed Quote.-33.03%
EURO / BRITISH POUND (EUR/GBP) 0.19% 0.90816 Delayed Quote.7.37%
HSBC HOLDINGS PLC 0.61% 386.1 Delayed Quote.-34.77%
WORLD CO., LTD. 2.05% 1493 End-of-day quote.-44.52%
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news "Economy & Forex"
12:27aJapan's domestic tourism campaign faces scrutiny as coronavirus spikes in Tokyo
RE
12:23aWheat eases from three-month peak, export talk limits losses
RE
12:21aTHE NEXT PHASE OF THE CRISIS : Further Action Needed for a Resilient Recovery
PU
12:19aTwitter hacking spree alarms experts concerned about the platform's security
RE
12:19aMany verified Twitter accounts able to post again after hacking
RE
12:16aIMF chief warms global economy 'not out of the woods,' dangers lurk
RE
12:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
12:11aAustralia, New Zealand dollars stumble at resistance as mixed data fails to cheer
RE
12:11aSingapore's financial system robust despite deepest downturn - c.bank chief
RE
12:04aDollar firms as weak China retail sales sound warning
RE
Latest news "Economy & Forex"