The ECB has been concerned that banks fleeing Brexit will try to set up empty-shell companies. REUTERS/Kai Pfaffenbach
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The European Central Bank demanded changes in banks' plans for relocating from the U.K., saying some are still seeking to set up "letter box" companies in the euro area with no real independence.The supervisory arm of the ECB has long been concerned that banks fleeing Brexit will try to set up empty-shell companies on its turf, seeking to reduce the costs of moving by leaving as many staff as possible in London. Daniele Nouy, the head of banking supervision at the ECB, said last week that about 20 banks have filed license applications with the central bank so far, while about 50 have discussed relocation in general.Several of the banks seeking a license with the ECB also plan to have bankers with jobs in more than one group entity, a practice known as "dual-hatting".
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