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Under new Prime Minister Boris Johnson, the U.K. is heading straight for a no-deal Brexit. Should Swiss banks be concerned about such a scenario?

Following the epic wrangling about the Brexit deal proposed by Theresa May, Boris Johnson's position seems clear-cut enough: if the forces that favor staying in the EU can't find a way of toppling the government in time, the country will leave the EU by the end of October, with or without a deal and no more delays.

The headlines haven't become less alarmist as a consequence of his insistence on leaving on that date whatever may come. British business representatives and their continental counterparts are warning about the dangers of crashing out without a detailed plan. And economists are adding their voices to the chorus, predicting a recession that will likely be deeper and longer if no deal can be struck.

The Swiss Deal

So what would it mean for Switzerland, a no-deal Brexit? finews.com has tried to find some answers.

Experts distinguish between the immediate effects on trade and the indirect impact that an economic slowdown will have on Swiss business more generally. The main reason why Swiss business is relatively relaxed about the prospects of a no-deal Brexit is the trade pact sealed by Swiss Economics Minister Guy Parmelin and Liam Fox, then a minister in the May cabinet.

The paper, signed in February, contains pretty much all trade-related rights and duties that are written into the bilateral agreements between Switzerland and the European Union.

Concern About Major Disruption