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Top EU regulator warns ‘rogue’ banks against gaming the rules

Watchdogs have become more concerned about what is known as regulatory arbitrage since the UK's Brexit vote

Daniele Nouy, Chair of the Supervisory Board of the Single Supervisory Mechanism, SSM, of the European Central Bank, ECB, addresses the media during a press conference following the announcement of the results of the comprehensive assessment (Stresstest) in Frankfurt/Main, Germany, on October 26, 2014. Nearly one in five banks subjected to a crunch financial health check by the European Central Bank have failed the test, though no major banks were among them, according to official data.  AFP PHOTO / DANIEL ROLAND        (Photo credit should read DANIEL ROLAND/AFP/Getty Images)
Daniele Nouy, Chair of the Supervisory Board of the Single Supervisory Mechanism, SSM, of the European Central Bank, ECB, addresses the media during a press conference following the announcement of the results of the comprehensive assessment (Stresstest) in Frankfurt/Main, Germany, on October 26, 2014. Nearly one in five banks subjected to a crunch financial health check by the European Central Bank have failed the test, though no major banks were among them, according to official data. AFP PHOTO / DANIEL ROLAND (Photo credit should read DANIEL ROLAND/AFP/Getty Images) Photo: Getty Images

One of the European Central Bank's chief supervisors has warned banks against trying to "game the rules", something that regulators are becoming more wary of in the light of Brexit.

In a speech to the European Money and Finance Forum (Suerf) in Helsinki this morning, Danièle Nouy, chair of the supervisory board of the ECB, addressed the issue of regulatory arbitrage — where banks or other financial firms take advantage of rule differences between jurisdictions or types of institution.

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