Investment banks have already received instructions from the European Central Bank (ECB) on the configuration that the negotiation windows should have in the euro zone, as well as the number of employees for each entity. Thus, the adaptation process that the organization began after the departure of the United Kingdom from the European Union ends.
Andrea Enria, president of the ECB Supervisory Board, has pointed out that the banks “know what they have to do, they have a certain deadline to meet our requirements” and that some of the entities already have “sufficient risk management capabilities in those tables”, while others will be forced to reinforce them.
Enria has also stated that he feels “very proud” of the transition process, which he has now concluded. The economist has highlighted the prudence of the ECB in this time of adaptation, which has given priority to risk management and has ensured that there is no “territorial hoarding of businesses.”
Enria applauds the role of the ECB
Major banks moved hundreds of millions of dollars in assets and miles of jobs to the EU in order to maintain access to clients there, after Brexit severed many of the UK’s ties with the bloc. . .
Following this unprecedented influx, the ECB carried out a “transparent” investigation to ensure that European commercial lending operations did not remain too closely tied to London.
Banks also have to obtain ECB approval for certain mathematical risk models they use to run their businesses, which has resulted in a “huge bottleneck.” “The process is very advanced and we are close to the situation where it will be like any other bank under our supervision,” he assured.
Although at first the new banks “had the mentality of minimizing any changes,” they are now beginning to study how to develop their business in the European banking union, Enria said.