The European Banking Corporation (EBA) told European banks on Monday (December 17) to prepare for Britain's exit from the European Union and the possible surprise withdrawal of Britain from the European Union, according to a Reuters report.
The EBA is concerned not only of financial stability, but the preparation of smaller enterprises for the potential departure of Britain.
The organization, a London-based European Union regulatory agency, told banks to set up contingency stations and educate their clients on how Britain's exit from the EU would affect.
The statement comes from the EBA where it is engulfed in Britain in a government confrontation over the issue. The result can go into several ways – either by leaving a surprise or free of any agreement or another referendum on membership of the European Union.
"The EBA is … calling all affected financial institutions … One of the organizers said:" They deal with their clients and provide adequate information about risks and mitigation of actions taken. "
Some places, such as London and Brussels, have begun planning an exit contract from the EU. A senior British minister, speaking to Reuters without speaking, said the risk of getting out of the deal was not rising day by day. The minister also said there was no secondary plan for the agreement of Prime Minister Teresa Mae, who is trying to maintain close trade relations with the EU.
The idea of Britain leaving the EU without a deal is an alarming scenario for many big companies, as Britain is the fifth largest economy in the world. Going out of the deal would mean there was no sudden transition and departure from the union.
As a member of the World Trade Organization (WTO), tariffs and other trade conditions would now be subject to WTO rules.
Some businessmen fear that new borders after Britain's exit from the EU could have devastating effects on ports, trade and supply chains around the world.
As for the banking sector, the EBA issued a statement that bank customers who are worried about Brexit should contact the banks themselves if they do not hear anything by the end of the year.