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Brexit: Banks could now shift to Frankfurt after EU vote

By Ben Woods

Published 14/07/2016

A top German central banker expects a boom in Frankfurt as financial businesses move activities and staff out of London in the wake of Brexit
A top German central banker expects a boom in Frankfurt as financial businesses move activities and staff out of London in the wake of Brexit

A significant slice of London's banking industry should be shifted to Frankfurt following Britain's vote to leave the European Union, according to a top German central banker.

Dr Andreas Dombret said euro clearing services cannot continue to take place in London, pinpointing Germany's financial capital as a "more appropriate alternative".

Dr Dombret said banks may also look to set up subsidiaries in countries within the EU if Britain breaks free of the single market and London-based lenders no longer have access to the bank passporting system.

He said: "I am convinced that euro clearing cannot take place to the existing extent in London -Frankfurt would be the more appropriate alternative."

Industry concerns following the Brexit vote have centred around the UK's membership of the single market.

Belfast Telegraph

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