Blog: ECB Tells Banks to Boost Risk Models of Post-Brexit Operations – Bloomberg Law

Several global banks that expanded their business in the European Union after the UK left the bloc need to do a better job of measuring and managing the risks they take in the region, according to the bloc’s top regulator.

The European Central Bank said investigations of internal models for market risk found deficiencies in governance and outsourcing deficiencies at what it described as the “Brexit banks” last year. That’s down to a “heavy reliance” on operations outside of the euro area, the ECB said on Tuesday in Frankfurt.

Investment banks from the US and elsewhere moved parts of their …