Impact of hard Brexit on financial services

Financial Chat
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The UK government has published guidance on the impact of a hard (no deal) Brexit on banking and other financial services.

A couple of extracts:

UK-based payment services providers would lose direct access to central payments infrastructure – such as TARGET2 and the Single Euro Payments Area (SEPA) – meaning customers (including business using these providers to process euro payments) could face increased costs and slower processing times for Euro transactions.

The cost of card payments between the UK and EU will likely increase, and these cross-border payments will no longer be covered by the surcharging ban (which prevents businesses from being able to charge consumers for using a specific payment method).

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Guess there’s not much point on Monzo continuing to get direct SEPA access then!

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:-1:t3:

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It’s painful that the UK government are insisting that no deal is an option at all, never mind the almost likelihood that it’s looking like now. :weary:

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The show ain’t over yet!

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Maybe not but I’ve seen the cast and I’m not sure it’s worth staying to the end.

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If £26trn derivatives contracts fail the credit crunch will look like a walk in the park…

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They won’t fail though. the article even states the Bank of England saying:

Those contracts would not become invalid overnight

just that

moving them across borders at speed would be hellish

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My thinking was more not necessarily that it’s a technical fail. But if markets take fright and people become suspicious about whether that contract will pay/exist. Much of the credit crunch came from a crisis of confidence and mis-trust. That’s more toxic in my opinon.

Sorry l spent to long in Brexit Twitter and was all fired up :wink:

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