4/17, 4:43 PM (Source: TeleTrader)
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ECB's Lautenschlager: EU to preserve CCP in no-deal Brexit

Member of the European Central Bank (EECB) executive board member Sabine Lautenschlager said on Wednesday that the European Commission will preserve the United Kingdom's central counterparty clearing (UK CCP) in case of the no-deal Brexit. Speaking at a conference organized by Banking and Payments Federation of Ireland, she added that Britain's departure from the European Union is just one of the uncertainties affecting banking sector, but that most of the financial institutions already made preparations for market turmoils.

"These measures are just a stopgap, and banks must make sure that they are prepared for what happens next. So, there is no time to relax; there is just a little more time to prepare," Lautenschlager stated. She also warned that the supervision of banks located outside of the EU accessing Europan markets through the UK would be more difficult, due to which common legislation needs to adapt quickly.

ECB official also sees the digitalization of financial services as an opportunity and risk at the same time, which should prompt banks to invest in cyber security and resilience. "[ECB Banking Supervision] will launch a number of on-site inspections on cyber risk in 2019, and we will continue to monitor the situation under our cyber incident reporting process, " Lautenschlager concluded.

Breaking the News / MA