Banks: EU Action

(asked on 22nd November 2016) - View Source

Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential effect of the recent EU Commission capital requirement directive proposal for foreign banks operating in the EU to set aside specific capital within EU intermediary holding companies on the long-term interests of the UK as a global financial centre; and if he will make a statement.


Answered by
 Portrait
Simon Kirby
This question was answered on 29th November 2016

Following publication of the proposal on 23rd November, we are performing analysis to evaluate the impact of these rules. How much the proposals might affect individual EEA groups operating in the UK would depend on their particular group structure.

The rules are not final, but are the starting point for negotiations. The proposals will be taken forward in Council and the European Parliament, and the UK will continue to engage fully in that process, where we will robustly defend Britain’s interest.

The UK already requires that subsidiaries of large foreign financial firms in London are well capitalised, meeting local capital and liquidity requirements.

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