Frankfurt (Reuters) – The Bundesbank does not expect any major upheavals in the banking industry in the wake of the final Brexit at the turn of the year.
“Regulation, supervision and banks have done everything to avoid disruptions or even turbulence on January 1, 2021,” said Bundesbank board member Joachim Wuermeling on Monday. “From our point of view, Brexit can come from there.” An undersupply of financial services on the continent should not be feared. All financial products offered in the City of London are now also available on the continent.
After the UK leaves the EU, the transitional period will expire at the end of December, during which the UK will still apply EU rules. The two sides have been negotiating future relationships for months. According to insiders, negotiations will continue in Brussels from Monday and run until the middle of the week. Results would be expected on Wednesday or Thursday
From the Bundesbank’s point of view, the stability of the financial system will not falter at the end of the transition period. “Even if there is a small amount of inviolability, the switch can now be thrown,” emphasized Wuermeling, who is responsible for banking supervision on the Bundesbank board. For the banking industry, the biggest cliffs have been bypassed on the whole. “There is no discernible threat to financial stability.”