The Bank of England (BoE) has unveiled plans to allow European wholesale lenders to keep operating as normal in the UK after Brexit.

In a paper published on Wednesday afternoon, the BoE reiterated that the “UK’s financial system is both a national asset and global public good.”

“Keeping the UK’s financial system open to foreign institutions is in the best interests of the UK, EU and global economies,” it added.

BoE governor Mark Carney told Parliament’s Treasury select committee on Wednesday:

Our approach is … best with a high degree of supervisory co-operation. We would hope it’s reciprocated. If it’s not, there will be consequences.

Wholesale banks operating in London will be able to re-apply for their existing status as either a branch or a subsidiary.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

They will still have to fill out a form shifting the status of their current UK branches from “passported” to “authorised,” but the process will be straightforward.

The ones that already operate in the UK through branches can continue to do so without creating subsidiaries, which is an expensive process.

Changing from a branch to a subsidiary could cost billions for a bank like Deutsche Bank, which employs 9,000 people in the UK, according to the BBC.

Miles Celic, head of the lobbying group TheCityUK, said:

Encouraging EU banks to continue to operate in the UK will help preserve financial stability for the UK and the EU and will help defend London’s position as an open global financial centre.

Earlier this week, the EU’s chief Brexit negotiator, Michel Barnier ruled out a free trade deal with Britain which includes financial services unless the UK remains in the single market:

There is no place [for financial services]. There is not a single trade agreement that is open to financial services. It doesn’t exist

Which banks are likely to be affected?

1. BNP Paribas

BNP Paribas, headquartered in Paris, is the eighth-largest bank in the world by total assets.

2. Sberbank

Sberbank is a state-owned Russian banking and financial services company headquartered in Moscow

3. UBS

UBS is a Swiss global financial services company co-headquartered in Zürich and Basel.

4. BBVA

BBVA is a multinational banking group headquartered in Bilbao, Spain. It is the country’s second-largest bank.

5. Credit Agricole

Credit Agricole is a French network of cooperative and mutual banks comprising the 39 Crédit Agricole Regional Banks

6. UniCredit

Unicredit is an Italian global banking and financial services company, which spans 50 markets in 17 countries.

7. Credit Suisse

Credit Suisse is a leading financial services company headquartered in Zurich.

8. Société Générale

Société Générale is a French multinational banking and financial services company headquartered in Paris.

9. Deutsche Bank

Deutsche Bank is a German global banking and financial services company, with its headquarters in Frankfurt.

10. Danske

Danske Bank UK (formerly Northern Bank) is a commercial bank in Northern Ireland.

11. DNB

DNB is is Norway’s largest financial services group.

12. Natixis

Natixis is a French corporate and investment bank.

It was created in November 2006 when the asset management and investment banking operations of Natexis Banque Populaire (Banque Populaire group) merged with IXIS (Groupe Caisse d’Epargne).