UK-based banks will have to move some operations to EU: Bundesbank

The Canary Wharf business district is seen at dusk in London

FRANKFURT (Reuters) – Banks based in Britain will struggle to access European markets once Brexit is completed so they will probably have to relocate some operations to the continent, Bundesbank board member Andreas Dombret said on Friday.

Banks are likely to lose their passporting rights and any arrangement that seeks to create a substitute is likely to be fraught with risk, leaving market access in persistent limbo, Dombret added.

“So it seems that the prospects for EU market access through the UK look rather dim,” Dombret said in London.

“I expect London to remain an eminent global financial center,” Dombret added. “Nevertheless, I also expect a number of UK-based market participants to move at least some business units in order to hedge against all possible outcomes of the negotiations.”

(Reporting by Balazs Koranyi; Editing by Gareth Jones)