EU bank watchdog warns small institutions are not ready for a hard Brexit
(15 December 2018 – United Kingdom) The European Banking Authority has warned smaller financial institutions and e-money firms are not doing enough to prepare for a cliff-edge Brexit, with just over three months until the UK is due to leave the bloc.
The EBA said contingency plans have improved among bigger banks but preparations of payment and e-money institutions are still causing concern.
The Authority said e-money and payments institutions are “of particular importance from an EU27 perspective, because of the large volume of payments business being offered by UK based institutions through their cross-border passporting activities. For such institutions, contingency planning, including relocation, where appropriate, is needed, and effective communication with customers ex-ante to prepare for any disruption is vital.”
The warning was included in the EBA’s annual report on key risks to the banking sector across Europe, including the UK.