29.08.2018. Banks leaving London

Company News

As Brexit nears, a lot of London- based banks are in talks with the European Central Bank in regards to move their operations to other European countries. In consideration are Frankfurt, Paris, Dublin and others. There is being estimated that up to 10,000 jobs could leave London.

HSBC bank announced that seven of its Europe-focused offices will move from London to Paris early next year. The transfer will take place at the end of the first quarter of 2019.

Deutsche Bank has moved almost half its euro clearing activities from London to Frankfurt. The clearing of euro-denominated interest rate derivatives has become a key Brexit battleground for regulators, banks and exchanges. In the past, London’s Clearing House was the undisputed leader for clearing euro-denominated interest rate swaps, processing up to €1 tn of notional deals a day.

Also one of the UK’s oldest banks Lloyds Banking Group intends to operate three different subsidiaries in continental Europe after Brexit. Lloyds was expected to run its EU business from a new subsidiary in Berlin and is now planning two more subsidiaries for customers in the EU.

The new regulations are requiring banks to divide up their balance sheets between retail and investment banking operations before January 2019 and are intended to protect depositors and taxpayers from a banking crisis situation.