European Central Bank to fast-track relocation applications from British banks, according to reports

 
Caitlin Morrison
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British banks are gearing up for job moves (Source: Getty)

The European Central Bank (ECB) is looking into fast-tracking licence applications from British-based banks hoping to move operations to the EU after Brexit.

The ECB will temporarily waive a regulatory test of lenders' financial models, as long as those banks meet the standards of the UK's City watchdog, according to Reuters.

A source told Reuters that the ECB would make the changes for practical rather than political reasons with the aim of minimising disruption to European finance after Britain leaves the EU.

The plans will be welcomed by the numerous institutions looking to relocate to the Eurozone after the UK exits the EU.

Ahead of last year's referendum, JP Morgan, HSBC, and Citibank warned jobs would be moved in the event of a Leave vote.

So far this year, HSBC has unveiled plans to shift jobs from London to Paris, UBS has confirmed it will move bankers out of the UK and Barclays has confirmed it is eyeing Dublin as the new base for its EU headquarters.

While lenders still lack clarity as to what kind of Brexit deal the EU and Britain will agree on, they now have a better idea of the timeline for the split after Theresa May set the date for triggering Article 50.

The Prime Minister confirmed on Monday that the Brexit process will begin next Wednesday, 29 March. Sterling dropped against both the dollar and the euro in the wake of May's announcement.

The ECB has been contacted for comment.

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