No-deal Brexit will hit even well-prepared banks

FRANKFURT: Euro zone banks have readied themselves for the shock of a no-deal Brexit, but will still suffer an economic hit, the European Central Bank’s supervisory board chairman said on Friday. Banks have moved in the right direction in terms of cushioning the blow, Andrea Enria (pictured) told Irish radio, and “are now ready to take the hit, to some extent.” However, “the fact that we are prepared for a shock doesn’t mean that the negative effects will not materialise,” he said in an interview with RTE Morning Ireland. “Brexit will of course have macroeconomic effects on top of the impact of COVID-19. And financial markets have not yet fully priced in the possibility of Britain leaving the European Union without a trade deal,” the Italian economist added. The warning comes as companies on the continent, particularly in Germany, are losing hopes of a deal, according to a report in Bloomberg News. — AFP