Germany - All financial institutions must be ready for a hard Brexit

FILE PHOTO: An illuminated British flag is seen at 10 Downing Street on Brexit day in London, Britain January 31, 2020. REUTERS/Toby Melville

BERLIN (Reuters) - Germany’s deputy finance minister on Monday said that it was necessary to prepare for the worst on Brexit and urged banks to be ready for a hard Brexit, adding there is a very strong risk of a tough situation ahead.

“The strategy of hope for the best, plan for the worst, I think is very prudent here,” Joerg Kukies told the Frankfurt Finance Summit.

“Every financial institution has to make sure that they are prepared for a hard Brexit, if and when it happens. We don’t want that and we hope that it can be avoided. But anyone who listens to the progress updates of the negotiating teams has to take into account that there is a very significant risk that we will go into a difficult situation.”

Reporting by Michelle Martin; Editing by Paul Carrel