The UK’s departure from the European Union is unlikely to go smoothly, according to Bundesbank board member Andreas Dombret.
“It doesn’t look like a soft Brexit to me at all,” Dombret told David Ingles in a Bloomberg TV interview in Tokyo on Tuesday. “It looks like either a hard Brexit or a very hard Brexit.”
Dombret said a hard Brexit would create a financial-stability risk for Europe, given the leading role of London in providing financial products used by companies across the continent.
“It’s very important from a financial-stability point of view that investment-banking products which have been offered through London will be offered somehow on the continent in a legal way for European corporates to buy them,” he said. [...]
“Now is the time for the banks and the market participants to prepare,” Dombret said. “Brexit is manageable for banks. I truly believe so, but I think we need a very thorough preparation and we have to do this in a very efficient manner.”
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