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17 July 2018

Financial Times: Lloyds Bank to open three EU subsidiaries after Brexit


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Lloyds Banking Group plans to run three separate subsidiaries in continental Europe after Brexit, as new regulations designed to prevent a repeat of the financial crisis complicate its access to European markets when the UK leaves the EU.


The bank was expected to run the majority of its continental business from Berlin, where it has around 300 staff. However, Reuters reported on Tuesday that the bank would open an additional subsidiary in Frankfurt to support its euro bond trading business, while a third operation would support its closed-book insurance business.

The set-up highlights the new logistical challenges and expenses facing even relatively simple domestic-focused lenders such as Lloyds. Each of the new subsidiaries would need its own licences and capital reserves, though they are not expected to require significant job moves.

A person familiar with Lloyds’ plans said its euro trading business would operate from the continent to ensure it can smoothly continue operations after Brexit. However, it could not be run from the Berlin unit because of new “ ringfencing” rules forcing banks to separate their retail and investment-banking operations. [...]

Full article on Financial Times (subscription required)



© Financial Times


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