In a decision that assuaged the anxieties of the City's big clearinghouses (and, we imagine, many market participants as well), European Union regulators said last month they would permit UK-based clearing houses to continue serving EU clients in the event of a no-deal Brexit - a decision they hoped would circumvent any unnecessary stressors in Europe's deeply intertwined financial markets.

But while putting the derivatives issue to rest solved one of the most pressing threats to financial-system stability posed by a 'no deal' Brexit, plenty of complications still need to be sorted out.

And in the spirit of ensuring that regular consumers are protected from the fallout (and not just the big banks), the European Banking Authority on Friday urged EU member states to admit EU branches of UK banks to their local depositor-protection schemes in case Britain crashes out of the bloc later this month, perhaps inadvertently implying that UK banks might face a higher risk of failure if Theresa May fails to pass a deal.

Here's more from the Financial Times:

The European Banking Authority on Friday called for individual bank deposits to still be protected in EU-based branches of UK lenders in the case of a no-deal Brexit. If the UK were to leave the EU without an agreement, branches of UK banks in the EU could potentially be excluded from the UK depositor protection scheme. The EBA said that authorities responsible for the programme across the bloc’s remaining members should “take active steps” to ensure deposits in those branches continue to be protected after the UK leaves, recommending that branches become members of local schemes. According to a European ruling, individuals can be reimbursed by up to €100,000 should the bank where they hold an account fail.

Though, to be sure, a wave of bank failures would be unlikely, the EBA said in its Friday "opinion" that local authorities should still prepare for the worst-case scenario, according to Reuters.

"The withdrawal of the UK from the EU is not likely to have an impact on the protection of deposits in the vast majority of credit institutions operating in the EU," EBA said in an "opinion" published on Friday. "It may affect branches of UK credit institutions in the EU depending on the decisions taken by the UK authorities on the potential exclusion of such branches from the scope of the UK depositor protection scheme, after the UK’s withdrawal from the EU."

The EBA would be remiss if it didn't take action during this "unprecedented" situation, given that EU law doesn't provide for how deposit protection involving a non-EU branch would work. Furthermore, the Bank of England proposed last year that EU branches of its banks wouldn't be protected by British depositor protection schemes.

Of course, if regulators choose to do nothing, it would be up to EU consumers to simply move their deposits to a Continental bank protected by these schemes.