The Bank of England says they are ready for post Brexit plans

The Bank of England says they are ready for post Brexit plans

The Bank of England hit back at European Union criticism on saying British banks were fully prepared for a disorderly Brexit.

They also said that it was the EU itself which should act to prevent market disruption.

BoE Governor Mark Carney challenged assertions made by the EU’s banking watchdog, the European Banking Authority (EBA), on Monday that banks were inadequately prepared for a hard Brexit.

“With respect, the EBA’s comments earlier this week were incomplete,” Carney said in a news conference. “They did not acknowledge the temporary permissions regime... which has been very clearly signalled by the UK government.”

This regime would allow branches of EU banks in London to continue operating after next March, but the EU has yet to reciprocate for UK lenders operating in the bloc.

“While UK authorities are putting in place measures to address financial stability risks that can be dealt with unilaterally, the complete set of mitigants to the risks of a cliff-edge Brexit also rely on the efforts of EU authorities,” Carney told reporters.

The BoE’s Financial Policy Committee (FPC) said in a statement on Wednesday that banks in Britain hold enough capital and do not need any more to cushion themselves against financial market turbulence if Britain leaves the EU next March without a transition deal.

On Monday, the EBA said banks had failed to make enough progress in their Brexit preparations and should not expect help from a “miracle” of public intervention.

Published: by Radio NewsHub
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