JP Morgan flag/Bloomberg
The European Central Bank (ECB) has started supervising some of the world’s top securities firms’ businesses in the region, as they build up their operations across the European Union (EU) ahead of Brexit, reported Bloomberg.
European units of Goldman Sachs Group, JPMorgan Chase & Co. as well as Morgan Stanley and UBS Group entered the ECB’s oversight this year as a result of their shift of operations from the UK to the euro area.
“Banks directly supervised by the central bank are generally becoming larger and more complex as banking groups consolidate or relocate activities,” said the ECB.
The world’s biggest banks have been moving staff and assets from London—Europe’s financial hub—to the continent and Ireland to retain access to clients in those regions after the UK leaves the EU. The ECB has urged the lenders to stick to schedules they agreed with the watchdog, regardless of the uncertainty of when Brexit will take place.
The ECB said it will oversee a total of 117 banks at the start of 2020, down from 119 a year earlier, as some dropped off the list and others were deemed large enough to warrant direct supervision.