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One side of the coin, the physical supply chains, in spite of short-term issues, can be resolved in the long term with optimised processes, or a “bare bones” deal may still be reached reducing tariffs on movement of goods.

The other side of the coin, the financial supply chains, however, does not appear to have either an immediate of medium-term solution. Provision of financial services, on cross-border basis, across all products, as done today, is not included in any envisaged deal outcome, outside the limited scope of “equivalence-based access”. Even that is under question with the EU only approving a temporary equivalence stop-gap measure only for access to clearing houses based in the UK. Most importantly, equivalence regimes focus on markets and investment services, while there are no such regimes for the core banking products that matter to exporters and manufacturers, such as provision of lending (including working capital), deposit taking (including managing liquidity across different currencies), or payments (including international cash, payments ad liquidity pooling).

This means that a critical and gaping hole, highlighted in the past by UK Finance, the UK’s banking and financial services trade association, has not been filled and manufacturers will have to take, or complete, their mitigation by end of the year to assure that their just-in-time-financing continues to support their just-in-time physical supply chains.

Nemanja Eckert is the Group Risk Advisor to EEE CORPORATE GROUP LLC. Nemanja has a wealth of experience at senior and executive positions in Corporate and Wholesale banking with the British Bankers’ Association (UK Finance) and Lloyds Banking Group across UK, US and EU.

His global experience in origination, regulation, risk management, international trade law, and advocacy gives EEE and its clients cross border expertise and contacts with supervisors, policymakers and principal corporate banks in the US, the UK, Germany, France, the Netherlands, Canada and Japan.

Having built and managed number of portfolios in excess of US$ 2bn and risk managed a US$ 3bn income, US$ 60bn assets global division of a systemic international bank, Nemanja brings expertise in corporate, asset, acquisition, trade and project finance, debt and operating model restructuring, portfolio management, and risk management. Nemanja holds Finra Series 63, 65, 7, 79 and 24 licenses, is a registered principle of Capella Securities LLC, has studied business, finance and international trade law in Aberdeen and Paris and resides in the UK and the US.

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