Brexit without transitional deal will be damaging for economy -RBS Chairman Davies
LONDON, Nov 13 (Reuters) - If Britain does not agree a transitional arrangement with the European Union, it will be damaging for the economy and for Britain's financial sector, the Chairman of Royal Bank of Scotland (LSE: RBS.L - news) said on Sunday.
The financial sector has been lobbying for an agreement designed to cover the gap between Britain completing its exit talks with the EU and agreeing a new trade deal with the bloc to prevent a "cliff edge" effect causing disruption.
"It is damaging if we don't get a transitional deal because I think you will then see banks and financial institutions making decisions on the basis of uncertainty," RBS Chairman Howard Davies told ITV (Frankfurt: A0BLQP - news) .
"They are currently making contingency plans and once you have got a contingency plan there is a risk you might implement it one day and therefore I think that it is quite urgent."
Davies said he thought it was possible Britain would get a transitional deal because the EU's other 27 countries realised their companies could also be damaged by being unable to raise finance in London in the event of a hard break with the EU. (Reporting by Kylie MacLellan; Editing by Elaine Hardcastle)