Great Britain formally left the European Union at the end of January this year. Until the turn of the year 2020/2021, however, there will be a transition phase in which largely the same rules and standards apply as before. London and Brussels are still negotiating a trade pact for the time after that.
“The institutes coming to Germany as part of the Brexit are generally well prepared for the end of the transition period,” said Wuermeling. “The banks must use the remaining weeks to fill the gaps in preparation.” The Bundesbank board of directors responsible for banking supervision warned: “Relocations of balance sheet items and employees – despite all the flexibility granted by the supervision – must be completed promptly.” The corona pandemic should not “serve as a pretext to postpone necessary adjustments”.
Banks that previously operated from the financial center of London and wanted to continue to offer services such as deposit and credit business within the EU had to seek a foothold in an EU country or expand their presence there. In Germany, according to the Bundesbank, 64 license applications were received from credit institutions, investment firms and financial service providers. The 40 largest of these in terms of volume have been successfully approved, the rest are still being processed.
The institutes that are new to Germany or are expanding their business in this country plan to relocate business with a volume of around 675 billion euros to Germany by January 1, 2021. Up to 2500 banking jobs are likely to be created in the course of Brexit in Germany – especially in the financial center of Frankfurt.