Deutsche Bank is preparing for the deal and the unsecured agreement in the Brexit negotiations


LONDON – As the Brexit trade talks between the UK and the European Union take place, the financial and banking sector is watching nervously.

Christian Sewing, CEO of Deutsche Bank at CNBC on Wednesday, said the lender was prepared for any eventuality when it comes to the final ditch negotiations to break the deadlock.

The remaining differences between the two parties focus on fishing rights, competition rules and transaction management.

“As a bank, you have to plan conservatively, we’re prepared for non-business, and that’s why it doesn’t change our view, it doesn’t change our strategy,” Sewing told CNBC Annette Weisbach as the bank held an investor day. on Wednesday.

“We are all prepared for every result,” he added.

The UK’s post-Brexit transition period ends on 31 December. If no agreement is reached, there is no business-as-usual scenario where businesses on both sides of the English Channel are likely to face higher business costs – and exports may face tariffs. .

Christian Sewing, CEO of Deutsche Bank, will attend the 50th World Economic Forum (WEF) Annual Meeting in Davos, Switzerland, on January 23, 2020.

Denis Balibouse | Reuters

His remarks come as British Prime Minister Boris Johnson prepares to travel to Brussels on Wednesday for a working dinner with European Commission President Ursula von der Leyen. Both sides expressed their intention to close a deal, but noted that unresolved issues made it difficult.

Sewing echoed the mood in the business community in both the EU and the UK – where British business groups warned again on Tuesday that companies did not have time to prepare for the end of the transition period.

Speaking to a government committee on Wednesday, industry leaders added on Wednesday that the country is likely to experience disruptions in food and drink imports, higher car costs if taxes are introduced, and the UK’s financial services sector is also hit.

According to Deutsche Bank Sewing, a scenario without the deal would not be good for the rest of Europe either.

“I don’t think the restriction would be a great result for Europe and the environment as a whole, we all know that,” he said.

“But most importantly, we are prepared for each and every result for our clients and that we can obviously deal with it and that is the case. So the preparations have been made at Deutsche Bank. Obviously we would prefer the agreement, but the day is not in our hands – we also have to plan for the disadvantage. “