ECB’s Nouy worried about ‘race’ to lure UK banks after Brexit

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European Central Bank's chief supervisor Daniele Nouy speaks during a banking conference in Lisbon

FRANKFURT (Reuters) – The European Central Bank is worried about a “race” among European Union countries to ease supervisory standards in order to attract UK banks seeking access to the market after Britain leaves the EU, its top watchdog said on Tuesday.

“Incoming banks might exploit these differences and trigger a race to the bottom in terms of supervision,” Daniele Nouy, the head of the ECB’s supervisory arm, said on Tuesday.

“We are worried about such a scenario – particularly in respect of large third-country branches.”

Nouy repeated her view that such branches should be attached to holding companies, known as “intermediate parent undertakings”, and put under European banking supervision.

(Reporting By Francesco Canepa)

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