Bank of England tells banks to 'prepare' for no deal Brexit

Marco Green
June 3, 2020

A transition period that has largely preserved the pre-Brexit status quo finishes at the end of this year unless British and European Union officials agree to an extension.

The UK enters its fourth round of trade talks with Brussels this week, following the last round which ended with the two sides divided over fishing.

The Bank of England (BOE) has told United Kingdom lenders they should get ready for the possibility of a no deal Brexit at the end of this year.

During a call with the chief executives of the U.K.'s biggest banks on Tuesday, Bailey said they should accelerate planning for a scenario where the post-Brexit transition period ends without a deal, according to a person familiar with the talks.

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

Spokespeople for HSBC, RBS and the Bank of England were not immediately available to comment.

The finance sector, which contributed a record £75.5bn in taxes past year, has been a key battleground since the Brexit vote and bank chiefs have grown increasingly concerned that their access to the bloc could be cut off without a deal in place.

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.

Now that payment deadlines have been relaxed due to COVID-19, the Moneycontrol Ready Reckoner will help keep your date with insurance premiums, tax-saving investments and EMIs, among others.

Other reports by Click Lancashire

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