Sunday, December 18, 2011

UK Regulators to meet with banks to discuss contingency plans for Eurozone breakup

British regulators are meeting with banks to discuss the state of their preparedness for a potential breakup of the euro zone, according to people familiar with the matter.

The U.K.'s Financial Services Authority has been talking with chief risk officers at top British and international banks to get a better understanding of their contingency planning, the people said. The regulator has asked banks to submit reports detailing their preparations for what would happen if the monetary union unraveled or if individual member countries were to revert back to their old national currencies.

The FSA is planning to host a roundtable meeting in coming weeks at which top bank executives will huddle with senior regulators to compare notes on how they can further prepare, these people said. The meeting will include executives from big British banks as well as international companies with London investment-banking arms.

"It's an opportunity for firms to share their experiences," one person said. The meeting will include a discussion about areas in which the banks need to improve their preparations, this person said.

The FSA also is engaging in one-on-one dialogues with some banks to discuss ways they can do more to prepare for a possible euro-zone breakup. Read More