EU Banking Regulator Urges Expanding Depositor Protections As 'No Deal' Brexit Looms
n a decision that assuaged the anxieties of the City's big clearinghouses (and, we imagine, many market participants as well), European Union regulators said last month they would permit UK-based clearing houses to continue serving EU clients in the event of a no-deal Brexit - a decision they hoped would circumvent any unnecessary stressors in Europe's deeply intertwined financial markets.
But while putting the derivatives issue to rest solved one of the most pressing threats to financial-system stability posed by a 'no deal' Brexit, plenty of complications still need to be sorted out.
And in the spirit of ensuring that regular consumers are protected from the fallout (and not just the big banks), the European Banking Authority on Friday urged EU member states to admit EU branches of UK banks to their local depositor-protection schemes in case Britain crashes out of the bloc later this month, perhaps inadvertently implying that UK banks might face a higher risk of failure if Theresa May fails to pass a deal.
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https://www.zerohedge.com/news/2019-03-01/eu-banking-regulator-urges-expanding-depositor-protections-brace-no-deal-brexit