Foreign banks based in the European Union may have to hold more capital and liquidity under revisions to rules being considered by the bloc’s member states, an EU document showed.
Officials in Brussels are looking to classify more foreign banks as subsidiaries rather than branches, a change which would require them to beef up their local balance sheets and come under direct EU supervision. The move would ensnare a large portion of lenders which opened branches in the EU after Britain left the bloc.
The full article is available at https://www.reuters.com/world/europe/exclusive-eu-eyes-lower-bar-force-foreign-banks-become-subsidiaries-2022-01-28/