US banks that cater to the European market present potential post-Brexit risks due to regulatory gaps that can only be filled by legislation, European Central Bank board member Sabine Lautenschläger said.
The risks stem from banks based in countries such as the US, Japan and China that have branches in London or elsewhere outside the European bloc, said Lautenschläger, who also is vice chair of the ECB’s bank-supervisory panel.
These branches’ services to Europe can’t be adequately overseen by the ECB or national regulators once the UK withdrawal scheduled for March 29 occurs, she said in a speech* last week.
*Banking & Payments Federation Ireland Risk Management & Supervisory Conference “Future Supervisory Landscape”; Dublin; Jan. 17, 2019.
Global banks that serve EU market pose post-Brexit risks, European regulator says
24 January 2019 10:31pm