LONDON (Reuters) – The European Union is considering “automatic triggers” that would force branches of foreign banks to become subsidiaries and hold more capital, an EU document showed.
The EU is revising its capital rules for banks, including more intense scrutiny of how foreign lenders operate in the bloc.
An EU document prepared for member states and seen by Reuters said adjustments to the rules could include an “automatic trigger for subsidiarisation”, or ways to constrain the discretion that regulators have in deciding which branches must become a subsidiary.
(Reporting by Huw Jones; editing by Jason Neely)
