UK Set to Allow European Banks to Work in Country Post-Brexit as Before - Report

MOSCOW (Sputnik) — According to the broadcaster, the Bank of England is planning to soften the impact of Brexit on the financial sector by allowing the banks registered in other European countries to operate through their branches, without creating subsidiaries that would cause extra costs for the institutions.

Operating through branches could help European banks move money for their international operations, but could also risk financial institutions moving funds to their headquarters in other countries in the event of a crisis, which could mean that the UK customers lose access to their accounts.

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The broadcaster reported, citing government sources, that one of the reasons behind the Bank of England's plans was that it was necessary to keep jobs for tens of thousands of people working in financial institutions and other areas related to banking, such as accountancy, and ensure tax revenues from these people.

Britain is set to leave the Union by March 2019 after the UK's historic vote to withdraw from the EU occurred about 18 months ago. Since June 19, 2017, Britain and the European Union have been negotiating new arrangements for the UK outside the EU. Key issues of the talks are rights of the EU and UK citizens after Brexit, the so-called "divorce bill" and the Northern Ireland border. Negotiators have to define as well post-Brexit trade relations between the UK and the European Union and terms of cooperation in all spheres.