Skip to main content
Welcome to
super saver spring
offer ends april 20
save over $140
save over 85%
$0.99
per week for 24 weeks
Welcome to
super saver spring
$0.99
per week
for 24 weeks
// //

The Bank of England stands in the City of London financial district in London on Nov. 5, 2020.

JOHN SIBLEY/Reuters

European Union banks’ branches in London should see no major change in how they are supervised after Britain’s formal departure from the bloc last month, the Bank of England’s supervisory arm said on Monday.

Britain is keen to maintain the City of London’s attractiveness as a global financial centre after full access to the EU, hitherto its biggest customer, ended last month.

Deutsche Bank, Société Générale and other leading EU banks have major operations in London, and BoE Governor Andrew Bailey said last week that Britain should remain open to financial firms from the rest of the world.

Story continues below advertisement

“Overall, the Prudential Regulation Authority’s (PRA) approach to the supervision of international banks remains stable and consistent following the U.K.’s withdrawal from the EU,” the BoE said in a statement on Monday. “Those firms which have operated in the U.K. for some time as either branches or subsidiaries should find the proposals to be in line with their experience of the PRA’s supervision.”

The BoE published a consultation paper on updating how it will supervise international banks in London, which is home to 150 branches and 90 subsidiaries of banking groups from around the world.

Many banks in London have opened new hubs in the bloc to avoid being cut off from the EU.

“The shift has corresponded to a proportion of the revenues and assets of U.K.-based investment banks moving to their EU entities,” the BoE said.

The BoE said it wants to make sure that foreign banks in London have adequate safeguards and controls on how they book stock, bond and derivatives transactions.

“The PRA remains open to highly integrated global booking arrangements, provided that they are effectively controlled and the PRA has sufficient visibility of the group risks,” the BoE said.

There are 66 banks from the EU seeking permission to operate as a branch in Britain, leading to a significant increase in the proportion of British banking assets that will be represented by branches, the BoE said.

Story continues below advertisement

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies