Reuters picking up an report from the ECB
ECB wants branches to be included in rules that require large foreign banks to have a separately capitalised EU holding company
Large US and Asian banks could be hit the hardest
UK opposes the proposals saying it will add to Brexit risks
The ECB wants branches to be financially secure from risks in their own right, rather than having to tap into their headquarters. Foreign banks have been quick to reject the idea saying it would vastly increase the costs and red tape of operating within the EU.
What an own goal that would be for Europe, if banks operating in the EU moved out due to this. I wonder where they might go that's close ;-)
