ECB tells banks in Britain to speed up Brexit preparations
Banks have been urged to speed up their Brexit preparations by the European Central Bank (ECB), which warned yesterday that London-based firms are falling behind on potential plans to move jobs.
The Eurozone’s top banking watchdog has called on firms to step up their contingency plans as the UK nears Downing Street’s 31 October deadline for leaving the EU with or without a deal.
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“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 One,” the ECB said in a statement.
It added: “Looking ahead, the ECB sees a risk that, as a result of the delays observed, banks will not be able to fully implement their target operating models within the timelines agreed with their supervisors.”
Consultants from EY said in June that banks in Britain had been showing signs of restarting preparations for a no-deal Brexit following a lull in the shift of financial services jobs and capital from the UK to the EU in previous months.