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EU bank rescue body warned banks of Brexit risks for capital buffers
September 29, 2017 / 2:32 PM / 18 days ago

EU bank rescue body warned banks of Brexit risks for capital buffers

FILE PHOTO - Elke Koenig, Chair of the Single Resolution Board, speaks during an interview with Reuters in Brussels, Belgium, August 10, 2016. Picture taken on August 10, 2016. REUTERS/Francois Lenoir

BRUSSELS (Reuters) - The European Union agency responsible for failing banks has warned lenders in the EU of the potential risks that debt issued under British law may not be compliant with EU rules after Brexit, the agency’s head said on Friday.

“We started to alert banks,” Elke Koenig, chairwoman on the Single Resolution Board told a news conference in Brussels.

She said she was not concerned at this stage and was waiting for the outcome of Brexit talks, but underlined that banks had been alerted on the possibility that they may have to issue new loss-absorbing debt in absence of a deal between British and EU negotiators on mutual recognition of resolution regimes.

Reporting by Francesco Guarascio @fraguarascio

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