The European Banking Authority (EBA) said in a statement, that Banks are „inadequate“ perpared for a Brexit without a ratified withdrawal agreement. „This should be a wake up call. Time is running out, in some cases it has run out, and don’t assume there will be a transition period,“ said Piers Haben, EBA director of banking markets, innovation and consumers. Based on the EBA’s assessment, financial institutions should take adequate steps to mitigate the impact without relying on possible public sector solutions that may not be proposed and/or agreed in time. In particular, financial institutions should ensure they have the correct regulatory permissions, and associated management capacity in place ahead of time. They should identify risks around access to financial market infrastructures and funding markets and mitigate those. Financial institutions should also assess and take necessary actions to address any impacts on rights and obligations of their existing contracts, in particular derivative contracts.
Source:
Muse: Time is running out, 07.08.2012
eba.europe.eu, EBA/Op/2018/05, 25.06.2018
eba.europe.eu, Franca Rosa Congiu, 25.06.2018
reuters.com, Huw Jones, 25.06.2018
spiegel.de, mmq/Reuters/dpa, 25.06.2018