UK banks in Europe should seek post-Brexit deposit guarantees: watchdog


Paris (AFP)

Europe's banking regulator on Friday urged European branches of British banks to ensure that clients' funds will remain covered by deposit guarantee schemes in case of a no-deal Brexit.

The European Banking Authority said "depending on the decisions taken by the UK authorities," branches on the continent may no longer be covered by Britain's own deposit protection system.

It urged European authorities to take "active steps" to encourage British branches to join national deposit guarantee schemes, which insure account holders in case an institution goes bankrupt.

The countdown is looming for the British parliament to approve a deal on the UK's withdrawal from the EU negotiated by Prime Minister Theresa May before the deadline of March 29.

May has struggled to get the backing of British lawmakers, raising the prospect Britain could crash out without a deal -- on citizens' rights, a divorce bill, and the status of the land border with Ireland.

That has raised concerns of a series of disruptions to financial services between Britain and the continent for banks, companies and consumers.