Up to 5,000 new jobs at overseas banks in Germany could be created in the next year to 18 month because of Brexit, the country’s foreign banking association said today.
The lobby group for non-German banks in Germany told an event in Frankfurt that almost 50 financial institutions had decided to ramp up their activities in Germany as a result of Brexit, Reuters reported.
Germany’s financial capital Frankfurt has been one of the European cities competing for an expected outflow of banking jobs from London in anticipation of the UK’s exit from the European Union.
Banks have been forced to move some operations out of the Square Mile in order to be able to continue to serve their EU clients after Brexit. London-based banks can currently sell services to firms in the rest of the EU without establishing a costly separate subsidiary. However, this is expected to change after Brexit as the UK leaves the EU's Single Market.
However, the outflow of jobs has not been as dramatic as some initial forecasts suggested.
Early predictions that put the number of City jobs at risk due to Brexit in the tens or hundreds of thousands, however those estimates proved overstated.
Banks and insurers that have moved operations overseas have typically moved small numbers of people for licensing and regulatory reasons, rather than moving operations wholesale.