British Banks Want More Clarity About Transition Period After Brexit
Bankers and regulators in the UK do not have legal certainty about their future after the country leaves the EU. Banks want new trading conditions to avoid hasty decisions about the movement of personnel and operations in accordance with the requirements of EU regulators. Earlier this month, the ECB said that any British bank that wants to retain access to customers from Eurozone and the EU will have to apply for a license by the end of the second quarter of 2018. The European Central Bank said that it received only eight applications for a license. In turn, European banks that want to maintain their presence in the UK must apply for a license to the British Prudential Regulatory Authority.
Any political agreement on transition must give regulators some confidence about their future. Prime Minister of Great Britain Theresa May offers a two-year transition period after the official withdrawal of the UK from the EU, which will be held on March 29, 2019. The EU insists on a shorter transition period - until December 2020. Earlier, the British side stated that the conditions of the transition period would be agreed in March, but the EU position in fact does not give hope for an early conclusion of disputes.
The EU wants to allow the UK to remain in the single economic union market on condition that it continues to comply with all the requirements of EU legislation. The agreement on a "divorce" between the EU and the UK can be concluded in October-November of this year.