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FRANKFURT (Reuters) - UK-based banks moving to the euro zone may get to use their own models to calculate risk for a "limited" time while the European Central Bank considers whether or not to approve them, a top ECB supervisor said on Thursday.
"We are aware that time is short and that it can take a while until an internal model is approved," Sabine Lautenschlaeger, who represents the ECB's supervisory arm on the Executive Board, said.
"Thus, there will be a limited period of time in which banks might be allowed to use internal models that have not yet been approved by the ECB – subject to strict conditions, of course, which will be assessed on a case-by-case basis."
Reporting By Francesco Canepa