WASHINGTON — U.S. regulators have been asking global banks to draw contingency plans for the possibility of Britain's leaving the European Union, according to a Reuters report.
The Federal Reserve Board, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency are asking financial institutions to examine how they would address uncertainty and continuity of services in the European Union from Britain operations.
The uncertain outcome of the June 23 referendum on what is known as "Brexit" has created concern among international financial regulators. The Bank of England last month called the referendum "the most significant near-term domestic risk to financial stability."
The OCC declined to comment specifically on the Brexit scenario, but agency spokesman Bryan Hubbard said that through its ordinary exam process, the agency "routinely works with the banks it supervises to ensure bank management understands the unique risks facing their banks," including international contingencies.
"We regulate the nation's largest banks, which are often internationally active in Europe and elsewhere," Hubbard said.
The FDIC and Fed declined to comment on the report.
Reuters quoted three sources in industry and regulation in the report.