Brexit could make life HARDER for banks operating within the EU, blasts RBS chief
RBS chief executive Ross McEwan has claimed banks will have a tougher time post-Brexit after losing certain benefits.
RBS chief: Brexit is making life harder for banks
Mr McEwan said passporting between the UK and European Union (EU) countries - where firms can sell British products and services to countries within the bloc and vice versa - would end, signalling a difficult future for the finance industry.
But, speaking on LBC, the banking chief revealed RBS was prepared and would take a “flexible” approach while assuring its European customers that deal in the UK.
He said: “My view is that passporting will cease. We are planning that passporting will cease. If we end up with passporting it’s a bonus, if we don’t it will cease.
"We're having to make sure that we will have all of the facilities we have for our corporate customers, protecting our corporate customers who do business in Europe.
If we end up with passporting it’s a bonus, if we don’t it will cease
"And our European customers, because we have about 300 very large European customers who deal in the UK, that we have facilities for them that actually don't interfere with the business, that they still can trade.
“For us, it’s a lesser extent than some other banks because we still have three business operations and licences in Europe… so we do feel we have some flexibility as to how we could operate.”
Meanwhile, Labour MP Owen Smith was criticised for claiming UK businesses were “struggling and suffering” as a result of Brexit.
Andrew Neil hit out at Mr Smith, who previously challenged for the leadership of his party but lost to Jeremy Corbyn, for saying there would be “a huge number of stumbling blocks” for the British economy to deal with.
The TV presenter attacked the politician’s gloomy forecast.
He said: “In what way is British business and industry struggling? At the moment, our economy is one of the fastest growing economies in the G7!”