Deutsche Bank is set to transfer assets from London to Frankfurt in order to ensure uninterrupted access to clients after Britain’s departure from the European Union (EU).
The process is already underway and being carried out with the full understanding of UK and EU regulators, a Deutsche Bank spokesperson said.
According to media sources, the volume of assets to be moved to Frankfurt is large. The bank also intends to transform the UK unit into a ring-fenced subsidiary following Brexit, sources said.
“The terms on which banks will operate in the EU and UK after Brexit remains unclear in the absence of a firm political agreement but our intention is to operate in the UK as a branch in line with the [Prudential Regulation Authority] guidance,” the spokesperson noted.
Last year, the bank unveiled plans to make Frankfurt as the primary global booking hub for its corporate and investment bank customers.
Banks including Citigroup, Morgan Stanley, and Standard Chartered have also selected Frankfurt as the new base for their EU operations in Brexit contingency planning.
Last year, Goldman Sachs leased more office space in Frankfurt in response to Brexit.
Nomura and Daiwa Securities also picked Frankfurt as their new EU base, while Sumitomo Mitsui Financial Group also unveiled plans to launch a subsidiary in the German city.