A Standard Chartered bank executive says tough demands by the regulators of the EU may mean more jobs moved from the uk abroad than currently thought.
Europe and the Americas, chief Tracy Clarke says that the relatively small size of the bank in the market of the EU means not “moving hundreds of people”.
But she says the impact on banks with large services of the EU can be “significant”.
Standard Chartered is spending around £15 million to convert its Frankfurt office in a European base because of Brexit.
The bank plans for the creation of a subsidiary in its German branch in order to maintain access to the European market after the uk withdraws from the European Union.
Has been waiting almost nine months for the EU officials to approve the relevant banking license, which was originally expected to receive the spring.
Ms Clarke told the Press Association: “Because we were one of the first [to apply for a license] there was no precedent for us or for them. It has been a learning process on both sides.”
The European Central Bank has said it will not tolerate the so-called brass plate operations – that is, where companies have a presence in a host country in name only.
Mr. Clarke says that means that the banks such as the united kingdom with its headquarters in Standard Chartered may end up moving more jobs because of Brexit than originally planned, in order to satisfy European banking rules enforcement.
“For us, it will still not be hundreds of people more by the size and scale of our business, so that you can talk a little bit more for us.
“But if you are taking this approach with all the other banks that are much larger than we are in terms of its European business, which might be more important”, he warned.
The ECB would not comment on Standard Chartered, but said he is “eager to avoid the banks on the creation of empty shells when granting licenses to international banks to the creation of new subsidiaries in the euro area in the context of Brexit”.
He added that there are a number of criteria that must be taken into account when assessing licence applications, including the subsidiaries of adequate local management capabilities, and can provide accurate data on their local activities.