RBS to increase German presence post-Brexit

RBS already has a banking licence in the Netherlands due to its 2007 takeover of ABN Amro. Picture: AFP/Getty Images
RBS already has a banking licence in the Netherlands due to its 2007 takeover of ABN Amro. Picture: AFP/Getty Images
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Royal Bank of Scotland has applied for a German banking licence to help retain access to clients in the European Union after Britain departs the bloc.

The bank is to upgrade its current branch in Frankfurt with a new licensed unit.

RBS already has a banking licence in the Netherlands due to its 2007 takeover of Dutch lender ABN Amro. But the new Frankfurt hub will be responsible for processing and settling euro-denominated payments, managing euro liquidity and offering loans to large German companies. About a dozen jobs are expected to be created in the city.

The move will allow RBS to maintain infrastructure associated with the Bundesbank and continue to benefit from passporting rights that give financial services firms cross-border access to EU clients.

Banks and other financial services firm are expanding or setting up hubs in the EU cities in response to Brexit. Lloyds Banking Group is to set up three subsidiaries in Berlin, Frankfurt and Luxembourg.