Deutsche Bank’s asset shift from London to Frankfurt ‘in line with UK, EU regulators’
The European Central Bank is said to be urging financial services players to shift their investment banking activities to the continent
Frankfurt — Deutsche Bank said on Monday it would move assets from London to Frankfurt after Britain’s planned exit from the EU in 2019, in line with demands from British and EU regulators. Deutsche Bank said in a statement it would make Frankfurt rather than London the primary booking hub for its investment banking clients, as per an announcement made in 2017. "By definition this involves moving assets from London to Frankfurt, a process which is under way with the full understanding of UK and EU regulators," it said, declining to specify the volume of asset shifts. A source familiar with the matter said the European Central Bank (ECB) was putting pressure on banks to shift investment banking activities from London to the continent. The ECB wants to prevent investment banks setting up empty shells on the continent while still supplying services from London, the source said. Analysts at Eurointelligence said this was costly in terms of capital. "We presume this is because of netting...
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