Tougher Non-EU Bank Rules

Tougher Non-EU Bank Rules.

Tougher rules are being thought up by the Bank of England (BoE) to avoid a repeat of 2008 and the start of the financial crisis.

These tougher rules mean that non-EU banks who wish to take deposits would have to set up subsidiaries in the UK along with stricter rules. These would be regulated by the UK’s Prudential Regulatory Authority (PRA).

This means that banks who do not wish to set up subsidiaries would be classed as branches and not face stricter rules.

This will affect new and existing branches of non-EU banks.

Non-EU banks in the UK will be assessed by the PRA to check if supervision of the bank in its home country is equivalent to the PRA. Once the PRA has received assurance from the home country supervisor that the firm’s resolution plan reduces the impact of the UK’s financial stability, the PRA will decide if it is content with the bank operating as a branch in the UK.