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The reassuring message came as Britain grapples with its worst
political crisis in decades ahead of an April 12 deadline to
secure a deal to leave the European Union.
"There will be volatility, but given the level of preparations,
I hope and I am convinced there should be no imminent risks to
financial stability" in the event of a no-deal Brexit, Elke
Koenig, the head of the Single Resolution Board (SRB), told a
news conference.
Koenig, who chaired Germany's banking supervisor before setting
up the SRB in 2015, said EU and British financial institutions
were prepared for any Brexit outcome, and so were euro zone
lenders although "banks could always do more".
A so-called hard Brexit, with Britain crashing out of the EU
without a deal, would hamper trade as business would face
immediate trade barriers and other restrictions.
"The impact on the real economy might have repercussions on the
banking sector, but I am not expecting the problem to come
straight from the banking sector," Koenig said.
Koenig also said a court ruling last week that overturned an EU
decision to block the rescue of Italy's Tercas bank in 2014
could open the way for discussions about the role of deposit
guarantee schemes beyond their core function of protecting
savers of collapsing banks.
Brussels had rejected Italy's plan to save the bank through the
national deposit fund, but EU judges effectively dismissed
Brussels' argument.
"It is a case that opens up perhaps the opportunity to discuss
what should deposit schemes be about," Koenig said, adding they
could be used for "alternative measures" and not just as a
safety net for depositors affected by a bank crisis.
(Reporting by Francesco Guarascio, Editing by Gabriela Baczynska
and Mark Potter)
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