Economics
Banks Can’t Keep EU Access With Shells After Brexit: ECB
Hard Brexit, Passporting, and the U.K. Banking Industry
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U.K. banks trying to keep access to European Union markets after Brexit will have to set up full-scale operations in the bloc, European Central Bank Executive Board member Sabine Lautenschlaeger said.
“I do not see the ECB issuing banking licenses to empty shell companies,” she said in a speech at the London School of Economics on Thursday. “I would certainly not accept banks’ booking all exposures with the euro area entity while having their risk management and internal control systems outside the euro area.”