Brexit banks seen moving RM3.8t of assets to Germany

FRANKFURT • Global banks affected by Brexit will move as much as €800 billion (RM3.77 trillion) of balance-sheet assets to Frankfurt, according to a lobby group for the German financial capital.

“The lion’s share will be shifted in the first quarter” of next year as banks prepare for a possible hard Brexit, despite recent progress toward a UK divorce deal, said Hubertus Vaeth, MD of Frankfurt Main Finance (FMF).

Brexit is forcing banks currently running their EU businesses from London to relocate to one of the remaining member states amid concerns UK-based banks will lose their pan-EU banking licences. Frankfurt is a particularly popular choice, with Goldman Sachs Group Inc, UBS Group AG and Morgan Stanley all opting to place their EU hubs in the German city.

Big US investment banks alone are planning to move at least €250 billion to Frankfurt, people familiar with the matter have said, while Bloomberg reported last year that Deutsche Bank AG would shift about €300 billion to the city from the UK. — Bloomberg