At a press breakfast, Dr Elke König, chair of the Single Resolution Board (SRB), said that she sees no imminent risk to financial stability from a No-Deal Brexit. Anna Tobin reports
“The SRB is closely watching the events in the UK in relation to whether and under what arrangements the UK will leave the EU,” said Dr Elke König, chair of the Single Resolution Board, the European Banking Union’s resolution authority. “All stakeholders in financial regulation are keeping the situation continuously under review and are working together for the common cause of financial stability. Preparations have been made, so the situation appears manageable. There may be volatility but given the level of preparedness, there should be no imminent risk to financial stability.
“The SRB has consistently maintained its expectations in relation to resolvability in the context of Brexit, reiterated clearly in the Brexit Position Paper published in November 2018, aligned with the EBA’s [European Banking Authority’s] opinions. This included expectations for banks relocating to the EU27. The relevant internal resolution teams have been working closely with individual banks to implement these expectations, in preparation for any market instability.
“We are watching developments as closely as everyone else, and we wait to see what comes out of Westminster this week.”