How bank­ing giants plan to cope with Brexit

The Star Early Edition - - INTERNATIONAL - Noor Zainab Hus­sain and Esha Vaish For­eign North­ern

GLOBAL banks have said they could move thou­sands of jobs out of Bri­tain to pre­pare for Brexit, the coun­try’s planned exit from the EU. Fol­low­ing are re­lated sto­ries about top banks (in al­pha­bet­i­cal order):

As­so­ci­a­tion of Banks in Ger­many: The as­so­ci­a­tion ex­pects 3 000 to 5 000 new jobs in Frank­furt over the next two years as a re­sult of Brexit.

Bank of Amer­ica: Bank of Amer­ica said in Au­gust that its busi­nesses and re­sults could be ad­versely af­fected and it may have to in­cur ad­di­tional costs if Brexit lim­ited the abil­ity of its UK en­ti­ties to con­duct busi­ness in the EU. Dublin is Bank of Amer­ica’s de­fault op­tion.

Bar­clays: Bar­clays is talk­ing with Ir­ish reg­u­la­tors about ex­tend­ing its ac­tiv­i­ties in Dublin, the Bri­tish bank said.

BNP Paribas: BNP Paribas may move up to 300 Lon­don in­vest­ment bank staff be­cause of Brexit, depend­ing how clients adapt and the French bank’s ef­forts to win new UK busi­ness, a source said.

Cit­i­group: US bank Cit­i­group said that it may need to create 150 new jobs in the EU to deal with the im­pact of Bri­tain leav­ing the bloc, and con­firmed it would head­quar­ter its EU trad­ing op­er­a­tions in Frank­furt.

Credit Agri­cole: Credit Agri­cole, France’s third-big­gest listed bank, could re­lo­cate about 100 em­ploy­ees from its Lon­don hub to France out of 1 000 based there in the case of a “hard” Brexit, its chief ex­ec­u­tive said.

Credit Suisse: Credit Suisse’s chief ex­ec­u­tive Tid­jane Thiam said in Septem­ber that his bank was rel­a­tively well placed to deal with Brexit and that only 15 to 20 per­cent of vol­umes in the in­vest­ment bank would be af­fected.

Daiwa Se­cu­ri­ties Group: Ja­pan’s sec­ond-largest bro­ker­age Daiwa Se­cu­ri­ties Group said it will set up a sub­sidiary in Frank­furt.

Deutsche Bank: Deutsche Bank is beef­ing up its pres­ence in Frank­furt.

Euro­clear: Set­tle­ment bank Euro­clear is look­ing at the op­tion of set­ting up a branch or sub­sidiary to pro­vide a route be­tween its UK and Ir­ish mar­kets.

French Bank­ing Fed­er­a­tion: French banks could shift about 1 000 jobs from Lon­don to Paris to keep staff in the EU.

Gold­man Sachs: US bank Gold­man Sachs is con­sid­er­ing mov­ing up to 1 000 staff from Lon­don to Frank­furt.

HSBC: HSBC sees the chances of a hard Brexit re­ced­ing af­ter Bri­tain’s shock elec­tion re­sult.

In­vestec: In­vestec is con­sid­er­ing con­vert­ing its Lon­don bank’s Dublin branch into a sub­sidiary to en­sure it has con­tin­ued ac­cess to the Eu­ro­pean sin­gle mar­ket af­ter Bri­tain leaves the EU.

JPMor­gan: JPMor­gan Chase said in July that the bank would prob­a­bly use Frank­furt as the le­gal domi­cile of its Eu­ro­pean op­er­a­tions af­ter Brexit.

Lloyds Bank­ing Group: Lloyds Bank­ing Group, Bri­tain’s largest mort­gage lender and the only ma­jor Bri­tish re­tail bank with­out a sub­sidiary in an­other EU coun­try, is close to se­lect­ing Berlin as a Eu­ro­pean base.

Mor­gan Stan­ley: Mor­gan Stan­ley has cho­sen Frank­furt to be a new base for its EU op­er­a­tions.

No­mura: No­mura Hold­ings is ap­ply­ing for a li­cence to op­er­ate a new en­tity in Frank­furt.

Trust: As­set man­age­ment com­pany North­ern Trust will set up an EU bank­ing base in Lux­em­bourg.

So­ciété Gen­erale: So­ciété Générale could move 400 cor­po­rate and in­vest­ment bank­ing jobs from Lon­don, with most go­ing to Paris.

Stan­dard Char­tered: Stan­dard Char­tered is in talks with reg­u­la­tors about mak­ing Frank­furt its post-Brexit Eu­ro­pean base.

Su­mit­omo Mit­sui Fi­nan­cial: Su­mit­omo Mit­sui Fi­nan­cial Group said its core bank­ing unit, Su­mit­omo Mit­sui Bank­ing Corp, has de­cided to set up a sub­sidiary in Frank­furt.

UBS: UBS is weigh­ing up whether to move bank­ing jobs in Lon­don to Frank­furt, Madrid or Amsterdam. – Reuters

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