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Brussels points out that cross-border banks are no longer sweeping

The expected collapse in the EU over the collapse of EU foreign banks to sell operations in the bloc seeks to focus more on “emergency” banks, a EU official said in a statement that could alleviate industry concerns that Brussels is pursuing more restrictions. .

Valdis Dombrovskis, the EU’s vice president, said it would be up to the bloc cabinet and the European parliament to clarify how the laws are being violated in the coming months. But he stressed that the content of the rules, which the agency said was “designed to benefit the central bank”.

He added: “The provision of major banking services depends on having a foundation in the member state, that is, a branch or a branch. . . it must be said that those requirements were very real. ”

The clampdown on cross-border trade is one of the most recent institutional rules on banking requirements, which provide a legitimate basis for the international bank Basel III. Among the requirements are the new powers that regulators require banks to turn other branches into well-managed entities, as well as strict rules on how non-EU groups can be traded without any branch or subsidiaries in the alliance.

The latter has raised serious concerns among bank lawyers and advocates for the adoption of the agency’s plan to ban all border trade from non-EU countries in a single bloc market. This may include banking operations and other markets regulated by different laws in the Markets in Financial Instruments Directive, rather than banking transactions such as bank lending and depositing.

Brussels’ proposal should be in line with EU policy that foreign banks should have a state-owned entity or entity that wants to do business.

International powers in Ireland and Luxembourg are among the most transformed in the EU. Luxembourg only needs a license if the service provider is in the country, while Ireland allows most events across the border as long as it does not affect the customer service.

Some banks and tourists feel that the EU has unwittingly pulled the contents of the Basel III package, and it has been shown that the door is wide open to curb the language.

The committee demanded that the records not include the “random” inclusion of the rules of Mifid, which allows for the sale of borders, said one promoter. “Anything that makes a person angry. . . be helpful, ”said an executive of a major international bank.

“It will now be up to member states and parliament in Europe to come up with ideas to explain how they can be used,” Dombrovskis said.

The banking package, he added, “brings a clear understanding of how third-party companies can provide banking services within the EU, ensuring that there are equal opportunities for all market players, and that our supervisors have the necessary tools to protect economic stability. who are its members “.

New EU policies have also attracted enlightenment in some areas. Sam Woods, chief executive of the Bank of England’s Prudential Regulation Authority, recently said The UK did not agree in a “tit-for-tat” game that restricts market access to EU groups.

Additional reports by Martin Arnold in Frankfurt

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