FT: ECB warns banks to curtail booking trades and loans in UK after Brexit

The European Central Bank has warned banks they have a maximum of three years after Brexit to curtail their use of a “back-to-back” booking model that makes it easier to keep staff and capital in the UK.

A “back-to-back” arrangement allows trades and loans processed in the EU to be booked in London, where the risk would be managed and the capital and liquidity held.

Three people familiar with the situation said the ECB had written to financial institutions and told them to limit their reliance on back-to-back booking models by 2022.

The full article is available at https://www.ft.com/content/a47c8ef4-c8b2-11e8-ba8f-ee390057b8c9

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