Banks need new cross-bor­der sys­tem

The Star Early Edition - - INTERNATIONAL -

BRI­TISH and EU banks need a new sys­tem that will al­low them to do busi­ness with each other af­ter Brexit, to avoid split­ting mar­kets, Bri­tain’s fi­nance min­is­ter, Philip Ham­mond, said yes­ter­day. Bri­tain, the EU’s big­gest fi­nan­cial market, is leav­ing the bloc in 2019, rais­ing the prospect of an abrupt cut in cross-bor­der links with­out a new trade deal. Ham­mond said Bri­tain’s Brexit ne­go­ti­a­tions with the EU would take a “prag­matic ap­proach” to fi­nan­cial ser­vices and how they are su­per­vised. “Frag­men­ta­tion of fi­nan­cial ser­vices would re­sult in poorer-qual­ity, higher-priced prod­ucts for ev­ery­one con­cerned,” Ham­mond told a fi­nan­cial au­di­ence in London. 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. – Reuters

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