Brexit and the European Banking Authority

Abstract

As a consequence of Brexit, the European Banking Authority will have to leave London. This prospect raises a number of questions: where to go? There are plenty of candidates. What criteria for a relocation decision: efficiency would point to locate EBA close to the other parties involved in regulation and standards setting, i.e. Commission, Parliament and Council. More difficult are the issues relating to the relationship with the ECB. Finally, one should take advantage of the relocation to reconsider the status of the three ESAs, especially as their tasks are likely to move more into the direction of supervision, instead of regulation. This would allow to deal with financial regulation as a whole, instead of the outdated sectoral approach, better and more efficiently organise common functions, especially in organisation, and develop skills for new developments esp. in the IT sector. The decision should not be limited to mere relocation.