Brexit poses some potentially serious headaches for financial institutions in the UK – making the ECB's warning even more foreboding:
that financial institutions have transferred"significantly fewer activities, critical functions, and staff to euro area entities than originally foreseen."The ECB added that while it believes the risks posed by a no-deal Brexit to Euro area financial stability on the whole would be manageable, it still expects banks to prepare for all possible contingencies — stating that they should speed up the implementation of any contingency plans.A shrinking pool of tech talent.
Loss of passporting rights. Passporting rights allow any firm authorized in a European Economic Area to carry on activities it's permitted to in its home state and any other EEA state by either establishing a branch or agents in an EEA country or providing cross-border services,Bank of England. But these rights may be on the chopping block if the UK can't seal a more favorable deal, and that could slow down how quickly UK-based banks can innovate.
The ECB's concerns are even more foreboding given that many FIs have been taking steps to prepare for Brexit. HSBC, for example, announced plans to move as many as 1,000 jobs from London to Paris, citing Brexit. And on a larger scale, FIs have disclosed as much as $5.2 billion in relocation costs, legal advice, and contingency provisions related to Brexit.
That the ECB is warning financial firms to step it up notwithstanding these preparations illustrates the severity of the issue and suggests that banks that are ready for Brexit day one could stand to gain in the Euro area in the short term.pass to Business Insider Intelligence and gain immediate access to the Banking Briefing, plus more than 250 other expertly researched reports.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
UK offers £25 million contract to maintain drug supply after BrexitBritain is asking logistics providers to bid for a 25 million pound express frei...
Consulte Mais informação »
Daily Briefing: Corbyn's bid to block no-deal Brexit viewed warilyDaily Briefing: - UK's opposition Labour Party vows to bring down PM Boris Johnson and delay Brexit - Iranian tanker Grace 1 likely to be allowed to leave Gibraltar after court decision - Fallout from U.S. trade policies and Brexit will slow Dutch economy
Consulte Mais informação »
UK's Labour vows to bring down PM Johnson and delay BrexitBritain's opposition Labour Party began its bid to bring down Prime Ministe...
Consulte Mais informação »
Rival plans to stop no-deal Brexit clash, limiting their chancesOpposition parties launched rival campaigns to topple Prime Minister Boris Johns...
Consulte Mais informação »
Germany believes no-deal Brexit 'highly likely' - HandelsblattGermany's government expects Britain to crash out of the European Union on ...
Consulte Mais informação »