Citigroup to fall under ECB supervision

Citi Building Canary Wharf

Citigroup’s move to simplify the legal structure of its banking operations in Europe will probably place it under direct supervision by the continent’s central bank for the first time, said two people with knowledge of the matter.

Bloomberg News reports that a combination of Citibank Europe in Dublin and the U.K.’s Citibank International will likely make it subject to direct European Central Bank supervision by breaching the $32bn threshold of total assets, said one person, who asked not to be identified because the matter is private.

The merger, set for January 1, will create a business with about $57bn of assets, based on end-2014 accounts.

Direct ECB oversight would see the regulator vet board and senior management appointments. It may also subject the bank to stress tests and capital buffers reflecting its view of the business’s riskiness. Citibank Europe would be supervised by a joint team of Irish and ECB regulators.

To access the complete Bloomberg News article hit the link below:

Citigroup Said to Fall Under ECB Supervision After Units Combine

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