UK banks relocating operations to the eurozone post-Brexit will reportedly be spared a major entry test by ECB regulators.
Editor’s Remarks: The European Central Bank typically demands a lengthy examination of big retail and investment banks’ financial models if they want to come under its remit, though this apparently be temporarily waived for UK-based banks seeking to come under its watch after Brexit. The move would help them shift, with insiders arguing that it is motivated by practical considerations to minimise disruption to eurozone finance rather than political reasons like easing flight from the UK. But the issue may end up moot given that most banks appear set to move their euro-sensitive operations before Brexit, and so could be deemed to have enough time to get their licensing anyway.
What to watch: European Central Bank, Goldman Sachs, HSBC, UBS, JP Morgan