Bank of England warns of risk in Europe on Brexit case
The European financial system could be affected if the United Kingdom leaves the European Union without reaching a consensus
The Bank of England argues that the financial market across Europe may be affected and even destabilized if the UK leaves the European Union without reaching an agreement on Brexit. The entity also announced the launch of loans in euros to British banks.
It is widely known that London is the European financial capital and several entities installed in the referred city or other places in the United Kingdom provide financial services to the entire continent.
The English entity warned: “It is possible that there are disturbances in cross-border services and in the absence of other measures by the authorities of the European Union, some potential risks to financial stability persist.” However, the European Central Bank did not want to issue any opinion on the matter.
Meanwhile, it was announced that European households and businesses would be the first to be harmed, but “it is also necessary to anticipate that the disturbances will impact the United Kingdom in a way that can not be fully anticipated or counteracted”.
The United Kingdom affirmed that it has already taken measures so that European entities can continue to operate and sell their services to the British. For its part, Europe has not taken any action or made any kind of efforts on this affair.
L.Sáenz
Source: Banca & Negocios
