Banks interested in moving their operations to Frankfurt from London due to Brexit have held "interesting discussions" with Andreas Dombret, a senior board member of the Deutsche Bundesbank, Reuters reported March 29.
Dombret, who was speaking to the news agency in an interview, said that while many U.K.-based banks have inquired about Frankfurt as a potential destination, Germany would not be offering them any favors to come to the city, nor allow regulatory arbitrage. He said the German central bank would not be marketing Frankfurt.
Dombret said he believed those banks leaving London would probably go to various cities rather than moving to one single location on the continent. Paris, Milan, Amsterdam and Dublin have all been reported as likely destinations.
Meanwhile, Dombret said he did not think Brexit would launch a wave of consolidation in the German financial industry, adding that he did not expect an increase in pressure on the country's banks from global rivals. He said 99% of domestic banks are not in competition with the banks that may move to Frankfurt.
Earlier on March 29, Britain formally announced its departure from the European Union, kicking off negotiations to forge a new trading deal between the world's largest customs union and the fifth-largest economy.