FRANKFURT (Reuters) – The European Central Bank has given euro zone banks till 2022 to restrict their reliance on their London operations for reserving trades and loans following Britain’s exit from the European Union, the Financial Times wrote on Monday.
The skyline with its monetary district and the top quarters of the European Central Bank (ECB,C) is photographed on early night in Frankfurt, Germany, October 5, 2018. REUTERS/Kai Pfaffenbach
The ECB, because the euro zone’s high banking watchdog, has lengthy stated banks will have to part out the so-called “back-to-back” reserving of EU trades in London. It has now set a three-year deadline to take action, the FT wrote, quoting a banker saying the ECB anticipated “a lot of” back-to-back reserving to be phased out even sooner.
Reuters reported in July that banks had been instructed to conform to a two- to three-year window for moving employees and features to the euro zone.
A spokeswoman for the ECB declined to remark.
Britain is formally because of go away the EU in March 2019.
Reporting by Francesco Canepa; modifying by Jason Neely