After Brexit , banks needs new UK-EU regulatory process: Hammond
Britain’s finance minister Philip Hammond said on Tuesday that a new system is needed for allowing British and European Union banks to do business with each other after Brexit to avoid splitting markets.
Fragmentation of financial services would result in poorer quality, higher priced products for everyone concerned, Hammond told a financial audience in London.
Britain, the EU’s biggest financial market is leaving the bloc in 2019 and raising the prospect of an abrupt cut in cross-border links without a new trade deal.
At present, banks and insurers in London serve the EU market from a single base but this passporting is set to end after Brexit without new arrangements.
Hammond said that we will need a new process for establishing regulatory requirements for cross-border business between the UK and EU. It must be evidence-based, symmetrical and transparent. And it must reflect international standards,
Second, cooperation arrangements must be reciprocal, reliable and prioritise financial stability. Crucially they must enable timely and coordinated risk management on both sides, he said. Third, these arrangements must be permanent and reliable for the businesses regulated under these regimes,” Hammond added.
Source : Reuters