Featured Product

    BoE Analyzes the Effects of Brexit on Monetary and Financial Stability

    November 28, 2018

    BoE published its analysis of how leaving the EU would affect its ability to deliver its objectives for monetary and financial stability, as requested by the House of Commons Treasury Committee. PRA also issued a direction stating that a notification must be made by submitting the Temporary Permission Notification Form using the Connect system. The notification must contain the information required by that form and must be made from January 07, 2019 to March 28, 2019. This direction is given by PRA under regulation 14(2) of the European Economic Area Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018.

    The BoE report analyzes the economic effects of the Withdrawal Agreement and the Political Declaration, presents framework for the future relationship between EU and UK, and describes the consequences of leaving EU without a Withdrawal Agreement. This analysis includes scenarios, not forecasts. The Monetary Policy Committee (MPC) and Financial Policy Committee (FPC) have reviewed the relevant scenarios, which will be used as inputs in policy deliberations.

    Building the scenarios requires making key assumptions about the form of the new relationship between UK and EU, the degree of preparedness across firms, critical infrastructure, and how macro policies respond. The scenarios are only calculated for the policy relevant timelines of the committees—up to five years. Therefore, these scenarios are not assessments of the relative long-term merits of different trading relationships. The degree of uncertainty around any forecast would be greater than the ranges provided in the report, given the usual uncertainty around other key influences on the outlook, such as shocks from the world economy, commodity prices, financial conditions, and confidence. However, the scenarios are informative about the relative economic impact of various economic relationships and transitions to them. 

     

    Related Links

    Keywords: Europe, EU, UK, Banking, Brexit, EU Withdrawal Scenarios, Financial Stability, PRA, BoE

    Related Articles
    News

    FSB Examines Financial Stability Aspects of Bigtech and Cloud Services

    FSB published two reports that consider the financial stability implications from the offering of financial services by bigtech firms and the adoption of cloud computing and data services across a range of functions at financial institutions.

    December 09, 2019 WebPage Regulatory News
    News

    APRA Specifies Capital Treatment of Equity Investments in ABGF

    APRA published a letter to the authorized deposit-taking institutions outlining the regulatory capital treatment of their equity investments in the Australian Business Growth Fund (ABGF).

    December 09, 2019 WebPage Regulatory News
    News

    EBA Publishes Action Plan on Sustainable Finance

    EBA published the Action Plan on sustainable finance for banks.

    December 06, 2019 WebPage Regulatory News
    News

    EBA Single Rulebook Q&A: Second Update for December 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions under the Capital Requirements Regulation (CRR) and the second Payment Services Directive (PSD 2).

    December 06, 2019 WebPage Regulatory News
    News

    APRA Publishes Proposal to Increase Transparency of Banking Data

    APRA proposed to substantially increase the volume and breadth of data it makes publicly available on authorized deposit-taking institutions, including banks, credit unions, and building societies.

    December 05, 2019 WebPage Regulatory News
    News

    ESMA Consults on Guide to Internal Controls for Credit Rating Agencies

    ESMA launched a consultation on the guidelines on internal controls for credit rating agencies (CRAs).

    December 05, 2019 WebPage Regulatory News
    News

    EU Finalizes Directive and Prudential Rules for Investment Firms

    EU published, in the Official Journal of the European Union, the Directive (2019/2034) and Regulation (2019/2033) on the prudential requirements and supervision of investment firms.

    December 05, 2019 WebPage Regulatory News
    News

    OSFI Revises Guideline on Principles for Management of Liquidity Risk

    OSFI finalized Guideline B-6 on the principles for the management of liquidity risk.

    December 05, 2019 WebPage Regulatory News
    News

    ESAs Publish Draft Amendments to Bilateral Margin Requirements

    ESAs published joint draft regulatory technical standards to amend the Delegated Regulation on the risk mitigation techniques for non-cleared over-the-counter (OTC) derivatives as well as a joint statement on the introduction of fallbacks in OTC derivative contracts and the requirement to exchange collateral.

    December 05, 2019 WebPage Regulatory News
    News

    RBNZ Releases Final Decisions Related to Capital Review for Banks

    RBNZ released a paper that sets out its final decisions following the comprehensive review of its capital framework for banks, known as the Capital Review.

    December 05, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4279