The German government approved new rules that will allow financial regulator BaFin to set transition arrangements for British financial institutions through the end of 2020, Bloomberg News reported.

The move is part of Germany's efforts to prepare for a no-deal Brexit. "We don't have much time ... on ensuring an orderly Brexit," Angela Merkel, the chancellor, said.

It will allow U.K. banks to extend European Union "passporting" rights through 2020. Passporting allows banks within the EU to sell services freely across the bloc.