FRANKFURT AM MAIN: Germany is the most popular EU destination for banks leaving London following Brexit, with financial institutions expected to move 675 billion euros in assets and create 2,500 jobs, the Bundesbank said Monday.
The German central bank expects lenders to transfer 397 billion euros ($462 billion) more than the 278 billion euros it has already moved from Britain post-Brexit, it said in a study, as negotiations intensify surrounding the conditions for the UK's new relationship with the European Union.
The European Central Bank estimated in August 2019 that 1.3 trillion euros in assets would be transferred to the eurozone from Britain ahead of Brexit.
Britain left the 27-nation bloc at the end of January, but is currently negotiating its future relationship with the EU amid a transition period that ends on December 31.
The spectre of a "cliff-edge" no-deal Brexit, which would add more obstacles to cross-border business, has risen in recent weeks as negotiations stalled over fair-trade rules and fishing rights, with EU Commission chief Ursula von der Leyen saying last week that talks were in a "critical phase".
The Bundesbank study confirms banks' preference for Germany as a base for operations away from London, estimating a total of 675 billion euros in relocated assets. By comparison, around 150 billion euros of assets will be moved to France by the end of the year, France's central bank governor said. Sixty-four financial institutions have applied for banking licences in Germany, with 40 so far having been approved, and the remainder pending. Financial institutions moving operations out of the City of London should boost bank workforces in Germany by as many as 2,500 positions.-AFP
Comments
Comments are closed for this article.