[LONDON] The EU banking watchdog has urged member states to offer deposit account protection for customers of branches of British banks in the rest of the European Union in case Britain crashes out of the bloc this month with no deal.

Bank deposits are protected by national deposit guarantee schemes so that if a lender went bust, sums up to 100,000 euros(S$53,772) remain safe under EU law - but that does not extend to branches of a bank that would be outside the EU.

The European Banking Authority - itself having to move from London to Paris because of Brexit - said it was calling on the schemes in EU states to ensure that depositors in the branches of UK banks in the bloc are adequately protected in case of a no-deal departure by Britain on March 29.

REUTERS