On Thursday, a senior official at the biggest bank in Germany said that the Deutsche Bank is “uncomfortable” with the uncertainty regarding regulations following the departure of Britain from the European Union.
The bank’s chief regulatory officer, Sylvie Matherat, noted that usually, a bank adapts to fit the mould after a regulator sets the framework.
However, currently, the situation is reversed since the Deutsche Bank was obliged to lay out its Brexit plans to the regulators in Germany and Britain before there is an actual framework established.
“At this stage, we are asked by regulators on both sides to send to them our plans, and then they tell us if they like them or not,” said Matherat. “Normally it’s the other way around: The regulation first, and then we adapt.”
“At this stage, it’s a little uncomfortable,” the regulatory officer said during a conference in Frankfurt, with the chief of the financial watchdog of Germany at her side on stage.
The bank’s headquarters are in Frankfurt but holds large operations in London. She refused to mention how many of the bank’s jobs might move from London, though she has said it could be around 4,000 during a past interview.
The Bank of England noted that it might require European Union Banks such as Deutsche, which presently operates in Britain as branches, to convert their outposts in London into subsidiaries which would need additional capital.
European banks have secretly warned that they will have to move thousands of people out of Britain if negotiations on Brexit force the Bank of England to demand that they reinforce operations in London with fresh capital.