European banking watchdog tells lenders to stop keeping customers in the dark over Brexit

The EU’s banking watchdog has hit out at lenders for not telling customers how they might be affected by Brexit.

In a reproachful statement released this afternoon, the European Banking Authority (EBA) said it had found “little evidence of financial institutions communicating effectively to their customers on how they may be affected by the UK withdrawal”.

The message was a follow up to a similar EBA message in June, which also urged banks to speed up Brexit contingency planning, calling their preparations “inadequate”.

Today’s statement admitted “continued progress in contingency planning”, urging financial institutions to maintain efforts in this regard, but said the EBA had seen little evidence of progress in keeping customers in-the-know.

Banks have set about obtaining new licences to continue operations across the EU, relocating their businesses and changing mechanisms to allow for data transfers between June and now.

“The EBA also notes that, should the customers that have concerns about whether they may be impacted by the UK withdrawal from the EU and that have not been contacted by their financial service provides by the end of 2018, they might wish to contact their financial institutions directly,” it added.

The statement comes amid continued political turmoil in Westminster as Prime Minister tries, and so far fails, to convince MPs to vote through her withdrawal agreement struck with EU negotiators.

May survived a vote of no confidence called by her own party last week after delaying a so called meaningful vote on the deal until January.