As London banks prepare to move operations before Brexit, lobby group Frankfurt Main Finance has revealed that the UK could lose up to €800 billion (£700 billion) in assets to Frankfurt.
Whilst a number of banks are moving operations to cities including Paris and Dublin, Frankfurt Main Finance confirmed that the German city would be the new home to the headquarters of 30 banks and financial firms.
The managing director, Hubertus Vaeth, said in a statement that most relocations will occur in the first quarter of 2019 with many to follow.
“All in all, we expect a transfer of €750 billion to €800 billion in assets from London to Frankfurt, the majority of which will be transferred in the first quarter of 2019,” he said.
“Banks are faced with the choice of either relocating only what is absolutely necessary or preparing for the relocation of the entire business.”
“In any case, it is clear that considerable second-round effects will follow,” he added
The managing director as said that an estimated 10,000 over 10 years will be created in Frankfurt due to Brexit. This is a contrast to the City of London, which is expected to lose 5,000 jobs before the UK leaves the EU in March.
Among the banks moving to Germany are Standard Chartered (LON: STAN), Credit Suisse (NASDAQ: TVIX), Citigroup (NYSE: C) and Lloyds (LON: LLOY).
In other Brexit-related news, this morning the latest Bank of England analysis warned that a no-deal scenario could lead to a recession worse than the 2008 financial crisis.
The news came after Philip Hammond’s Brexit analysis, where the Chancellor admitted that the UK would be worse off in all Brexit scenarios