Merkel wants EU banking supervision in Frankfurt

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The EU resides Supervisory authority for banks in London. After the Brexit will change that. Chancellor Merkel is in favour of Frankfurt am Main as a future site, and is not alone.

From the Thames to the Main? The Bank’s supervision in London, with views of the City of London

Germany felt “predestined” for the recording of EU-banking supervision, “because we have one of Frankfurt but is a decent centre”, said Angela Merkel at a meeting of the German Volks – and Raiffeisen banks in Berlin. “The UK is a Partner, the UK is a friend,” said Merkel. But there are fundamental freedoms in the EU, such as the free movement of Goods, persons, services and capital. “It can’t be true, that I confess myself to be one of the fundamental freedoms, but otherwise nothing to notice.” Therefore, the outlet must have a price, so the Chancellor in the direction of the UK.

Currently, the EU banking authority (EBA) in London. The authority has Employed 160 and mainly focuses on technical requirements and the design of the stress tests. For Frankfurt-am-Main, headquarters of the European Central Bank (ECB), which is for more than two years for the supervision of banks in the Euro area in charge speaks. The Central Bank oversees its nearly 1000 employees, the 129 largest banks in the currency Union directly and provides the framework for the smaller institutions.

Frankfurt am Main: German meeting place of banks, stock exchange and insurance

Also Finance Minister Wolfgang Schäuble (CDU) had already voted in favour to relocate the EBA to Frankfurt am Main. In the beginning of April the magazine “der Spiegel called” a reasoning paper, which was Schäuble to his Cabinet colleagues. The German Finance Minister is in favour, because of the combination of national banks, and European institutions such as the ECB, the Bundesbank and the German financial Supervisory authority BaFin for Frankfurt as a location. That is why Frankfurt have a unique feature in comparison to other financial centres. As a further prospects for the EU-banking supervision, Amsterdam, Dublin, Paris and Vienna, and Luxembourg apply.

nm (rtr, dpa)