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Some of the world’s biggest banks haven’t moved enough senior staff into the European Union after Brexit, the bloc’s top regulator has concluded, an assessment that will likely lead to renewed pressure for more job moves to the EU.
An exercise by the European Central Bank, known as “desk mapping,” found that several of the lenders reviewed -- who all have headquarters outside the EU -- haven’t built up sufficient local capabilities to manage their business in the region, people familiar with the process said.
Part of the reason is reluctance among senior executives to move from London to places such as Dublin, Frankfurt and Paris, the people said, asking not to be identified discussing private information.
The conclusions mean the ECB will likely urge the banks to relocate more senior roles into the EU or take other measures that strengthen local management, the people said. The review was designed to assess whether banks are doing enough to manage their risk, rather than a means to push for staff relocations, said the people.
The review included US firms like Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley as well as others Barclays Plc, HSBC Holdings Plc and UBS Group AG, they said.
Almost six years after the U.K. voted to leave the EU, banks are still sparring with regulators over the structure of their business in the bloc. While many investment banks are reluctant to shift away from London given its deep liquidity and talent pools, the ECB wants to have oversight over the financial risks for the European Union that are embedded in the balance sheets of global banks....
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