ECB President Mario Draghi is planning to fast-track London bank applications
It was claimed British-based financial firms have made inquiries with the European Central Bank, the eurozone’s banking supervisor, as they want to come under its jurisdiction.
The amount of interest has apparently prompted the ECB to look at sparing them a lengthy licence entry test by regulators to make it easier for them to shift.
Big retail lenders and investment banks usually have their financial models thoroughly examined to determine the risk of a default on a mortgage or derivative, but this could be temporarily waived as long as banks meet the standards of British regulators, they said.
Resources are limited. The ECB would find a way of processing London bank applications quickly
A decision by the ECB would be chiefly for practical rather than political reasons, with one of the sources saying it would aim to minimise disruption to European finance post-Brexit.
The official, talking on condition of anonymity, told Reuters: "Resources are limited. We would find a way of doing it (applications) quickly.
"The European financial system wants to continue to function."
London is the financial capital of Europe
By not having to take part in the lengthy process Frankfurt, Paris, Luxembourg and Dublin can increase their chances of winning business from Europe’s financial capital, London.
The ECB declined to comment.
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Theresa May announced on Monday she would trigger Article 50 next Wednesday which will set off two years of negotiations with the European Union.
The Prime Minister has made it clear Britain will leave the single market which allows banks in London to sell their services tariff-free across the bloc.
The ECB is trying to make it easy for banks to move from London
The ECB has jurisdiction over Europe's banks
Final business terms are still uncertain as negotiations have not taken place yet, but several banks, including HSBC, have threatened to move their headquarters to Europe.
Finance executives are reported to have privately said they expect Brexit to isolate London, currently Europe's financial capital, and want to establish bases inside the EU from where they can access its market.
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Dublin has received 80 such inquiries from financial institutions including banks, according to IDA Ireland, an agency that attracts foreign investment, while about 50 envoys from foreign banks met Germany's watchdog earlier this year about a possible move.
A decision on the ECB waiver for British-based banks is expected in the coming months.
Yesterday, Goldman Sachs’ CEO revealed it will begin moving hundreds of people out of London as it prepares for Britain to leave the EU.