Andrea Enria, the head of the European Banking Authority, told the FT in an interview that a contentious way of transferring risk across borders was an indispensable “backbone” of global finance and would not be banned after Brexit.
The EBA has previously raised concerns about the method — known as “back-to-back” operations — which bankers have been studying as a means of keeping more capital in the UK after Brexit. The European Central Bank continues to insist that the measure should be not be used to shift risk from the EU to the UK after the country’s departure from the bloc.
The full FT article is available at https://www.ft.com/content/63174f46-b118-11e8-8d14-6f049d06439c?
A speech on similar topics by Enria on fragmentation in banking markets from September 17 2018 is available at https://www.eba.europa.eu/documents/10180/2353431/Andrea+Enria+speech+on+Fragmentation+in+banking+at+BCBS-FSI+High+Level+Meeting+170918.pdf