Single Supervisory Mechanism

Brexit: relevant information for credit institutions

On December 29, 2020, the Spanish Government has approved a Royal Decree-Law by means of which adaptation measures are adopted after the end of the transitional period provided for in the Withdrawal AgreementOpens in a new window. These measures seek to guarantee legal certainty and avoid disruptions in the provision of financial services.

For more information, please visit the website of the General Secretary of the Treasury and International Financing: in a new window

And the section on financial services on the website "Brexit" of the Presidency of the Government in a new window

Following the United Kingdom’s decision to leave the European Union (EU) in 2019, some UK-based financial institutions may be considering moving certain parts of their business to the EU in order to ensure continued access to the Single Market for financial services, as of 1 of January 1 2021, end-date of the transitional period provided for in the Withdrawal Agreement concluded between the United Kingdom and the EU in accordance with Article 50 of the Treaty on European Union.

In the Banking Union, the European Central Bank (ECB) is responsible for the authorisation and oversight of banks, in collaboration with the national supervisors, within the framework of the Single Supervisory Mechanism. The ECB, in close cooperation with the Banco de España, carries out the direct supervision of significant institutions, whereas less significant institutions are supervised directly by the Banco de España, and also indirectly by the ECB. The Banco de España is also responsible for the authorisation and supervision of branches of banks from non-European Economic Area (EEA) countries.

In order to help those UK-based banks that are considering relocating some of their banking activities to the euro area to operate under a full banking licence, the ECB has developed, in collaboration with national supervisors, a list of FAQs. The aim is to cover the key supervisory issues of interest, including the expectations concerning authorisations and banking licences, internal governance and risk management, as well as banks’ internal models and ongoing supervision.

Those banking groups that wish to set up a subsidiary bank or branch in Spain should contact the Banco de España. In order to help make the process more efficient, we would encourage the applicant bank to request a pre-application meeting promptly. Questions or meeting requests should be addressed via this contact formOpens in a new window. The Banco de España will reply to your question or arrange for a meeting (in English) as soon as possible.

Further to our general disclaimer, please note that the information contained in this web page does not purport to be the opinion of the European Central Bank or of the Single Supervisory Mechanism itself and, as such, is without prejudice to the stances that may be adopted or agreed upon by the Single Supervisory Mechanism on the subjects described herein from time to time. Additionally, part of the information contained herein is subject to future developments that may arise in the context of the negotiation process for the United Kingdom's departure from the European Union.

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