Crash-out Brexit hit to be ‘severe and immediate’, says Central Bank

The lending activity of Irish banks and access to credit for consumers and SMEs are unlikely to be adversely affected even in a worst-case Brexit scenario, the Central Bank has said.

The regulator said that while a no-deal Brexit could have a temporary impact on financial markets and result in some level of market dislocation, it probably would not lead to any large-scale constraints on consumer or commercial credit. It said the Irish banks would have sufficient capital and contingency plans to withstand even the worst-case Brexit outcome.