Exclusive: Brexit banks set to avoid lengthy euro zone entry test – sources | Reuters

By John O'Donnell | FRANKFURT FRANKFURT Banks in London that relocate operations to the euro zone after Brexit are likely to be spared a lengthy entry test by regulators, making it easier for them to shift, according to two officials with knowledge of the matter.The European Central Bank, the euro zone's banking supervisor, has had many inquiries from British-based banks wanting to come under its watch, prompting it to look at fast-tracking license applications, according to the sources. It is set to temporarily waive an examination of the financial models that big retail lenders and investment banks use to determine the risk of a default on a mortgage or derivative - as long as the banks meet the standards of British regulators, they said.Any such decision by the ECB would be chiefly for practical rather than political reasons and would, said one of the people, aim to minimize disruption to European finance after Britain leaves the EU."Resources are limited. We would find a way of doing it (applications) quickly," said the official, talking on condition of anonymity because of the sensitivity of the matter

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