IGTA Journal - Summer 2018

Speech Prof. Joachim Wuermeling Member of the Executive Board of the Deutsche Bundesbank Brexit means Brexit – but what does it mean for Europe as a financial centre? Speech delivered at the annual reception of the Association of Foreign Banks in Germany Frankfurt am Main | 20.06.2018  1 Introduction  2 Leaving the single market means separate supervisory regimes  3 Supervision of future third-country institutions: requirements and cooperation  4 The future of Europe as a financial centre  5 Conclusion 1 Introduction Ladies and gentlemen It gives me great pleasure to be able to speak to you today about the future of Europe as a financial centre after Brexit. There are three aspects which I would particularly like to address.  The first of these is that banks looking to relocate their business to the EU or expand their presence here after Brexit will be asked to satisfy the same minimum prudential standards that foreign banks already operating within the Union and domestic institutions are expected to comply with. At the same time, we will need to find solutions that prevent any unnecessary additional expense.  My second point is that in future, institutions that conduct cross-border business will be heavily dependent on how the respective supervisors oversee third-country institutions – as they will then be – and how the authorities involved will cooperate internationally.  And third, when considering Brexit, we tend to dwell on the negative side of things and think about how best to cushion the impact. As important and justified as these considerations are, we nonetheless need to continue to press ahead with our vision of a harmonised financial market in the EU – a digital financial centre of Europe which offers as yet untapped potential. IGTA eJournal | Summer 2018 | 22