Daily Management Review

RBS to receive banking license in Germany


Royal Bank of Scotland has applied for a banking license in Germany to maintain access to European markets after the UK exits the European Union, the Financial Times reported.

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The bank plans to replace its existing branch in Frankfurt with a new division with a license.

RBS has already received a license in continental Europe in connection with acquisition of the Dutch bank ABN Amro in 2007.

The new division will be responsible for processing and calculating payments in euros, managing liquidity in euros, providing loans to large German clients and attracting their deposits.

According to estimates by the German industry organization Frankfurt Main Finance, financial companies and banks will transfer € 750-800 billion of assets from London to Frankfurt by March 2019 in preparation for the UK to leave the EU.

Frankfurt Main Finance also predicts that during the transition period after Brexit from London to Frankfurt as the new financial capital of the EU will be moved about 10 thousand jobs in the financial sector.

A number of large banks and financial companies are evaluating or have already submitted plans to transfer the main part of their units from London to Frankfurt. These include, in particular, Barclays, Deutsche Bank, Citigroup, Credit Suisse 

source: reuters.com