Many banks do not meet the global standards - ECB's Lautenschläger

Key highlights from the introductory statement by Sabine Lautenschläger, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB, at the AFME Board Meeting in Frankfurt, 22 March 2017.

• It is the job of banks to take and allocate risks
• Banks are far too important for the economy to indulge in adventures
• Right now, it is still very unclear how the world will look after the UK has left the EU
• The worst case would certainly be a “hard Brexit”. In that scenario, the UK would become a “third country” from the viewpoint of the EU
• As a result, UK banks might lose their European passport and, with it, access to the Single Market
• We obviously don’t care whether UK banks move to Frankfurt, Dublin, Paris or some other location in the euro area. What we care about are safe and sound banks
• All entities in the euro area must have adequate local risk management
• The transitional period (for UK banks) will cease as soon as we have approved or rejected the bank’s model application