Automaker Ford has secured a licence from the European Central Bank (ECB) to launch a bank in Germany.
The decision was taken in order to reduce associated business risks resulting from UK’s decision to quit the European Union and subsequent uncertainty regarding passporting rights.
Ford Credit Europe (FCE), a subsidiary of Ford based in the UK, applied for the licence in February 2018. The subsidiary serves dealers, retail, fleet as well as business customers in the UK and 11 other European countries.
FCE, however, plans to retain its UK base and operate the new bank as a subsidiary of its UK bank. The German entity is expected to be launched in the second half of 2018.
The decision will not lead to layoffs or significant changes to where staff is based, Ford said.
FCE’s businesses in the Czech Republic, Switzerland and Hungary will continue to use their existing licences.