The Strategist

Frankfurt Main Finance: Frankfurt is about to become post-Brexit financial capital

12/05/2018 - 06:20

According to estimates of the German industry organization Frankfurt Main Finance, financial companies and banks will transfer assets in the amount of € 750–800 billion from London to Frankfurt before March 2019 in preparation for the UK’s withdrawal from the European Union.

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Press release of the organization noteds that, according to Frankfurt Main Finance, the European Central Bank received 37 applications from British financial companies and banks to obtain or renew licenses. 30 of them chose Frankfurt am Main as the European headquarters after Britain leaves the EU.

FMF Managing Director Hubertus Väth believes that in addition to the large-scale transfer of companies' assets during the first quarter of 2019, further actions will follow to move companies from the UK to mainland Europe.

The FMF also predicts that during the transition period after Britain’s withdrawal from the EU from London to Frankfurt, about 10 thousand jobs in the financial sector will be relocated in the new financial capital of the EU.

Currently, a number of large financial banks and companies are evaluating or have already announced plans to transfer the main part of their divisions from London to Frankfurt. These include, in particular, Barclays, Deutsche Bank, Citigroup, Credit Suisse, JP Morgan, Lloyds, Nomura, Mizuho, Morgan Stanley, RBS, and several other companies.