RBS Seeks Banking License From Germany

RBS Seeks Banking License From Germany

Business Headlines

To continue serving its European clients without any hiccups in the event of a no-deal Brexit becomes a reality, the RBS wants a banking license to operate in Germany. This move would be applicable to all the bank’s subsidiaries. It would directly affect NatWest that trades in the EU block. Banking group of Lloyds has announced that it will set up three new subsidiaries. These subsidiaries will be located in Luxembourg, Frankfurt and Berlin. Barclays has announced that they are planning expansion of the Dublin office. As per the new plan, RBS wants to expand its Frankfurt branch. This branch will act as a new licensed unit.

This Frankfurt branch will carry out activities like settling and processing and settling payments in Euro Currency. It will also handle loans and payments to German corporates. Because of this branch, RBS will maintain ties to Germany’s central bank. RBS will also get benefit of pass porting rights. These rights will enable RBS to secure client base spread across European Union Countries. Though no staff will be moved to the new branch, 12 new job positions will open up in Frankfurt branch of RBS.

Around 37 financial institutions based in Britain are seeking for new licenses or expansion of their current ones from the Central Bank of Europe before Brexit. From which, thirty institutions are planning to have their base in Frankfurt and will move around € 600 billion worth of assets to Frankfurt before Britain leaves the EU block in March 2019. During early December RBS had announced its plans to shift £ 13 billion business in case Brexit deal is not reached to the Netherlands to continue its operations. NatWest Markets is planning to move around 33 % customers from investment banking section to the new subsidiary before March 4, 2019. Some financial services firms like Goldman Sachs, UBS and HSBC announced that they will move some jobs out of London due to Brexit.