The European Central Bank (ECB) is putting more pressure on major international banks to come up with plans to ensure that their operations in the European Union can operate profitably and operationally independently after the Brexit transition period. That writes the British business newspaper Financial Times.
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The transition period following Britain’s departure from the EU will come to an end at the end of this year and negotiations on a new trade agreement are difficult. According to the ECB, while banks are making progress with their post-Brexit plans, some banks need to do even more, for example on relocating assets and staff from London to activities in the eurozone.
Banks such as JPMorgan Chase, Goldman Sachs and Morgan Stanley have expanded their operations in the eurozone in the wake of Brexit and are now directly supervised by the ECB. The central bank wants to make sure that operations in mainland Europe are strong enough to run without support from London. This concerns, for example, IT support.
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