ECB Calls On UK Banks To Step Up Transferring Operations To EU Amid No-Deal Brexit Threat

The European Central Bank (ECB) issued on Wednesday a recommendation for UK banks to boost preparations to transfer their activities to the EU jurisdiction amid the risks of a no-deal Brexit

LONDON (UrduPoint News / Sputnik - 15th August, 2019) The European Central Bank (ECB) issued on Wednesday a recommendation for UK banks to boost preparations to transfer their activities to the EU jurisdiction amid the risks of a no-deal Brexit.

"So far, banks have transferred significantly fewer activities, critical functions and staff to euro area entities than originally foreseen as part of their plans for Brexit Day 1. The ECB now expects banks to speed up the implementation of their plans. Where contingency plans for a no-deal scenario are not yet fully implemented, banks should step up their preparations to minimize execution risk. They should also address operational challenges associated with transferring staff and clients and setting up the necessary internal processes and systems," the ECB said in a statement.

According to the European Central Bank, the banks' failure to complete preparations for a no-deal Brexit could have a negative impact on the profitability of these banks.

The United Kingdom was initially supposed to leave the European Union on March 29. A withdrawal deal was reached weeks before the date, but the UK lawmakers have refused to pass it. The Brexit deadline was subsequently moved to October 31, but the lack of consensus between Brussels and London still makes the a no-deal Brexit still a possibility.