In new rules for global banks who do financial business in Europe, Brussels tries to undermine future financial crises within the bloc and even gain more control over foreign financial firms.
Wall Street, Asia and British banks could be required to hold more cash in their European operations according to new proposals by the European Commission. (EC)
These changes will certainly burden non-EU banks looking to do business Europe, and European regulators will have more power to oversee such foreign firms, according to Express UK.
“So what we are doing, we are implementing standards that are agreed internationally which we expect other jurisdictions to implement these standards,” says European Commission Vice President Valdis Dombrovskis. The US implemented similar rules.
“The problems are that this new rule is inflexible, and looks like an aggressive reaction to developments in the US, at a moment when greater regulatory co-operation and convergence are seen as critically important in the market,” James Perry, financial regulation partner at law firm Ashurst, said. “It is also a further unhelpful complication to the wider Brexit issues.”
Before the changes become officials, heads of state from all EU member countries will need to approve.