The UK’s upcoming divorce from the EU will not come without costs, and no matter what the eventual scenario, those costs will be substantial and far-reaching, on both sides of the fence. UK banks already have a lot on their plates in the form of new-regulation compliance, but it is now or never to prepare for EU-27 inclusion after March 2019.
The implementation of the Brexit separation of Britain’s financial system from that of the European Union remains more loaded with questions than answers. Bankers are hoping for a gentle divorce, while the government of Britain is indicating a harder stance—guaranteeing a process that will be costly in more ways than one.
We know through experience that preparing for the worst is a wise strategy, which is why most financial institutions in the UK are currently banking on a “hard Brexit” scenario. No matter what exactly transpires after Article 50 of the Lisbon Treaty is officially invoked, hard work lies ahead, and plenty of it.
It is no secret that China has been facing serious problems related to its mounting debt levels. The growing pile of bad loans, especially from the country’s corporate sector, has raised red flags at many of the world’s leading research institutions.