The “top supervisor” of the European Central Bank said that the banks based out of London wanting to continue maintain an access to the “European Union's single market” would need to shift their “key functions, branches and dealing operations” following the official exit of Britain.
ECB is the supervisor in the euro-zone’s banking sector, whereby it received “many inquireies” that came from the banks based out of Britain who want to “come under its watch” and the bank may consider to give them “an expedited entry”. However, Daniele Nouy maintains that “empty shells” will not be sanctioned by Frankfurt as the “bank branches” along with their “key functions” need to be relocated as an attachment to the “holding company” that will be under ECB’s supervision. Single Supervisory Mechanism’s Head at ECB, Nouy, said:
“We don't want to authorize empty shells”.
“We want what is needed in the SSM to be domiciliated in the SSM, so internal control, risk management and so forth.”
She also added that ECB should have the right of supervising even “broker-dealers” which closes a loophole and provides “authority over a key area of business for investment banks”. In Nouy’s words:
“Some investment banks in London can be attracted by countries saying 'I will give you the status of broker-dealer so you'll be supervised by me and not by the SSM'”.
“So this will have to be addressed.”
On the 29th of March 2017, the Prime Minister of Britain, Theresa May, will initiate the separation process between the E.U. and Britain by introducing a “two years of negotiations” that will decide the future of both, Britain as well as Europe. The financial landscape of Europe could be redesigned provided “Frankfurt, Paris, Luxembourg and Dublin” take over London businesses.
References:
http://www.reuters.com
ECB is the supervisor in the euro-zone’s banking sector, whereby it received “many inquireies” that came from the banks based out of Britain who want to “come under its watch” and the bank may consider to give them “an expedited entry”. However, Daniele Nouy maintains that “empty shells” will not be sanctioned by Frankfurt as the “bank branches” along with their “key functions” need to be relocated as an attachment to the “holding company” that will be under ECB’s supervision. Single Supervisory Mechanism’s Head at ECB, Nouy, said:
“We don't want to authorize empty shells”.
“We want what is needed in the SSM to be domiciliated in the SSM, so internal control, risk management and so forth.”
She also added that ECB should have the right of supervising even “broker-dealers” which closes a loophole and provides “authority over a key area of business for investment banks”. In Nouy’s words:
“Some investment banks in London can be attracted by countries saying 'I will give you the status of broker-dealer so you'll be supervised by me and not by the SSM'”.
“So this will have to be addressed.”
On the 29th of March 2017, the Prime Minister of Britain, Theresa May, will initiate the separation process between the E.U. and Britain by introducing a “two years of negotiations” that will decide the future of both, Britain as well as Europe. The financial landscape of Europe could be redesigned provided “Frankfurt, Paris, Luxembourg and Dublin” take over London businesses.
References:
http://www.reuters.com