ECB heaps further pressure on big banks over Brexit plans - report

Author: Justin Low | Category: News

The ECB and big banks in Europe continue to clash over Brexit

The central bank had been constantly asking big banks to prepare for Brexit and are said to send a stern warning once again over the summer. Speaking to the Financial Times, the ECB said that:

"Some banks have substantially reached their target operating model already or are well on track towards that target. There are other banks that still need to make progress, both in terms of relocating assets and staff. Our joint supervisory teams have engaged with these banks to make sure there is a shared understanding of the path towards the target operating model."
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The push by the ECB is believed to draw quite a bit of flak from the big banks, with some suspecting that this is a politically motivated way of putting pressure on the UK as negotiations enter into a crucial phase currently.

In short, the ECB isn't too satisfied with the progress by banks to shift assets and resources from London to their Eurozone offshoots; but banks are worried that they may end up with overlapping operations if the UK and EU can settle on 'equivalence'.

More from the Financial Times here (may be gated).

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