Banks Fleeing Post-Brexit U.K. Face Fresh Regulatory Scrutiny
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Global banks moving operations from the U.K. to the European Union because of Brexit are poised to face fresh regulatory scrutiny on the value of their assets and capital as the bloc’s top watchdog seeks to curtail risks.
The European Central Bank and national authorities will conduct an in-depth review of the largest firms’ balance sheets, including their most illiquid assets, Ed Sibley, a member of the ECB supervisory board, said in an interview. Barclays Plc and Bank of America Corp., which picked Dublin as their new EU headquarters, will be assessed as early as possible this year, according to Sibley, who is also a deputy governor at the Central Bank of Ireland.