Bankers said to stall Dublin de­ci­sions on soft Brexit hope

Muscat Daily - - BUSINESS -

Dublin, UK - Ir­ish au­thor­i­ties have seen a drop in the level and in­ten­sity of in­quiries from fi­nance firms seek­ing to set up shop in Dublin af­ter Bri­tain’s June elec­tion led to the prospect of a softer Brexit, ac­cord­ing to a per­son fa­mil­iar with the mat­ter.

UK Prime Min­is­ter Theresa May lost her ma­jor­ity in the June 8 vote, prompt­ing some banks, in­sur­ers and as­set man­agers to scale back plan­ning in favour a wait-and-see ap­proach, ac­cord­ing to the per­son, who asked not to be iden­ti­fied.

Some ex­ec­u­tives viewed the elec­tion out­come as rais­ing the chances that the UK could stay in the sin­gle mar­ket, al­low­ing Lon­don-based firms to con­tinue sell­ing fi­nan­cial ser­vices into the Euro­pean Union, the per­son said. A ‘high level of am­bi­gu­ity re­gard­ing the fi­nal level of Brexit bank ap­pli­ca­tions’ ex­ists, ac­cord­ing to min­utes of a June meet­ing of the cen­tral bank com­mis­sion, which over­sees the or­gan­i­sa­tion.

Ire­land’s cen­tral bank re­ceived no for­mal ap­pli­ca­tions to ap­prove credit in­sti­tu­tions in the first half of the year, fig­ures re- leased on Tues­day showed.

Still, the cen­tral bank com­mis­sion said firms have ex­pressed enough in­ter­est in an Ir­ish base to jus­tify beef­ing up its ac­tiv­i­ties, and ap­proved the cre­ation of 26 new po­si­tions for its credit in­sti­tu­tions direc­torate.

Bank of Amer­ica Corp chose Dublin as its pre­ferred EU hub last month, while JPMor­gan Chase & Co bought a planned city-cen­tre of­fice block that could hold as many as 1,000 peo­ple.

Some banks are still plan­ning for po­ten­tial loss of ac­cess to the euro re­gion. Deutsche Bank AG is gird­ing for a hard Brexit, with plans to book the ‘vast ma­jor­ity’ of its trades in Frank­furt, CEO John Cryan said in a video­taped mes­sage to its 98,000 em­ploy­ees last month.

The Bank of Eng­land (BOE) said on Wed­nes­day that it had drawn about 400 re­sponses to an April re­quest for de­tails of fi­nan­cial in­sti­tu­tions’ Brexit plans - 147 from banks and in­vest­ment firms and 254 from in­sur­ers - in­clud­ing all UK firms and ma­te­rial branches of Euro­pean ones.

The BOE’s Pru­den­tial Reg­u­la­tion Author­ity is in the process of analysing the sub­mis­sions and is ex­am­in­ing both the de­tails of in­di­vid­ual firms’ plans and look­ing at them col­lec­tively, deputy gover­nor Sam Woods said.

A file photo shows a gen­eral view of Dublin, Ire­land

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