Lloyds 'establishing subsidiary to retain access to EU
Lloyds Banking Group is reportedly setting up a subsidiary in Europe to maintain access to the single market after Brexit.
The group is believed to be preparing plans to ensure that it retains access to the European payment system and maintains its German and Dutch retail clients, according to a report by the Financial Times.
Lloyds is the only major high-street lender without any subsidiary in an EU country, as it is heavily focused on the UK, but the bank has offices in Frankfurt and Amsterdam. It is understood the group is considering converting one of these two branches into a subsidiary. Lloyds declined to comment on the report.
The group has a mortgage branch in the Netherlands with around £8bn of loans, while it also has an online bank in Germany with some £12bn of customer deposits.
Financial services firms have been drawing up contingency plans amid fears the Government's Brexit negotiations will see the UK lose crucial passporting rights. These allows UK-based financial companies to access clients across the 28-nation EU. The rights have seen London become a hub for global firms looking to do business in the European Union.