As PM Teresa May struggles to secure a Brexit agreement ahead of the EU Summit this week, we were privy to the thoughts of one of Europe’s most influential bankers, at an exclusive breakfast event in London yesterday, hosted by our strategy and management consulting client, zeb.
Professor Dr. Andreas Dombret, former Board Member of the Deutsche Bundesbank, was speaking at the launch of zeb’s UK and European Banking Study at London’s Pewterer’s Hall. We’ve worked on these types of events for zeb for the last two years. As a company which has only had a presence in the UK for a couple of years, these events have been fundamental in helping us to build media relations and overall brand awareness for zeb. For this year’s event we used the hook of the EU Summit and the attendance of one of the most renowned commentators on Brexit, to secure high-profile attendees.
In front of an audience of leading journalists from the likes of The Times, Press Association, Bloomberg and The Guardian, Professor Dombret urged banks not to rely on the ‘safety net’ of a post-Brexit transition period, warning that the economic consequences of insufficient preparation for a hard Brexit would far exceed the costs of proper preparation.
His thoughts were echoed by zeb’s Managing Director, Bertrand Lavayssiere, who said the current political upheaval comes at a time when financial institutions are facing unprecedented challenges. According to the findings of zeb’s European Banking Study, banks are operating in unstable market conditions fuelled by unsustainable profit taking, crisis level valuations and dwindling market share, putting future profitability at risk.
Mr Lavayssiere argued that it was imperative that banks have sufficient funding, informed decision making and the adequate senior management empowerment to ensure they can not only live through this period of uncertainty but also thrive in the post-Brexit era.
The general feeling at yesterday’s event was that the sooner Teresa May can find a resolution the better, but in the meantime, there is still plenty to chew over.