Lloyds Banking Group is closing in on Berlin as its new EU hub post-Brexit.
It was reported last December that the bank, which is the only major UK retail lender without a subsidiary in another EU country, was looking into establishing a base in either the Netherlands or Germany to make sure it still had access to the Single Market once the UK left the EU.
Now, Reuters has reported Lloyds is looking at converting its branch in the German capital into a subsidiary and might apply for a banking licence in the country later this year.
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The move could make it the odd one out from its financial sector peers. While many are said to be eyeing Frankfurt, Germany's main financial city and the home of the European Central Bank, there has been less interest in Berlin.
Lloyds declined to comment.
Many across the financial sector have voiced concerns that Brexit will spell the end of passporting, a complex set of rights which is used by UK-based firms to do business in the EEA and vice versa. Concerns like these over market access are pushing firms to considering what options they have for keeping one foot in the EU following Brexit.
Last week, it was reported insurance market Lloyd's of London was considering Luxembourg as its new EU home post-Brexit, although it is understood the majority of its operations will remain in the UK.