The risks to European Union clients in the Eurozone must also be supervised. Nearly five years after the British voted to leave the European Union, much has yet to be settled.

London

The European Central Bank is trying to curb the practice of “cascading bookings”. Banks serve clients in Europe while keeping their principal capital and employees in the United Kingdom.

(Photo: Bloomberg)

Frankfurt According to informed circles, the European Central Bank is tightening its control of risk management in global investment banks. In doing so, it wants to make sure that they are not dependent on their divisions in London despite Brexit.

In order to be able to oversee risks related to EU clients in the eurozone as well, the European Central Bank and national supervisors examine the whereabouts of key bank employees and where their transactions are booked.

Auditing, known as “office mapping”, affects, as we hear, the European Union subsidiaries of international banks such as Goldman Sachs, Citigroup, JPMorgan, Bank of America, Barclays and Morgan Stanley. The European Central Bank asked banks detailed questions about risk management. It concerns the location of the merchants and the risk personnel associated with them as well as the question of how the business is carried out

Nearly five years after Britain voted to leave the European Union, banks and regulators continue to grapple with the practical fallout. It remains uncertain what the long-term regulations for financial services will look like.

Today’s top jobs

Find the best jobs now and
You are notified by email.

In particular, the European Central Bank is trying to curb the practice of “back-to-back bookings”, whereby banks serve clients in Europe while keeping their capital and key employees in the United Kingdom. According to the European Central Bank, such an approach makes risks harder to control.

According to people, the audit is part of an effort to keep supervisory practice comparable and to enforce uniform standards. A spokeswoman for the European Central Bank said the exercises were at an early stage and were still under way.

More: Great Britain is putting European Union banking rules to the test

READ  Kids fight for what is arguably the best Minecraft job in the world

Leave a Reply

Your email address will not be published. Required fields are marked *