Citi becomes first global bank to be supervised by ECB after Brexit
American Citi bank has become the first global lender to be supervised by the European Central Bank since Britain voted to leave the European Union.
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11:04 18/11/24
Citi’s Irish unit, Citibank Holdings Ireland, was added to a list of large banks directly supervised by ECB, after it expanded its balance sheet through last year’s merger with UK-based Citibank International.
This shift in assets to a Eurozone country is an option many other UK businesses are considering in order to keep their foot in the door to the European market.
Goldman Sachs is considering shifting some of its assets and operations from London to Frankfurt and ECB board member Sabine Lautenschlaeger said last week that several banks are talking to the central bank about similar moves.
Citi has however said that even though it is re-allocating certain businesses to the EU it would not “hot foot” it out of Britain.
The Irish subsidiary houses Citi’s retail banking operation in Europe and has around €46bn in assets. It could not however accommodate the bank’s brokerage or trading businesses, which is currently based in London.
"This is an important milestone for Citi in Europe and we look forward to a strong engagement with the (ECB)," Citi said in a statement.