Lloyds picks Berlin as new EU base in wake of Brexit

The banking group plan to move its base to Berlin.

Lloyds (LON:LLOY) has reportedly chosen Berlin as its new European hub, following the UK’s decision to leave the EU.

The banking group hopes to change the status of its Berlin branch to by the end of September. Lloyds will have to submit an application to BaFin to change the status of the branch.

According to The Telegraph, Berlin was not the only city that the bank considered. Amsterdam and Dublin were also considered, but Berlin proved the favourite as it is already home to Lloyds’ biggest European operations with around 300 members of staff in the branch.

Converting the branch in Berlin should to a straightforward task for the banking group, as they already have an extensive team located there.

Different studies have suggested that tens of thousands of jobs in the finance sector could leave the UK following Brexit. Authorities in Luxembourg, Amsterdam and Frankfurt have said that they will welcome all operations that wish to leave London.

Xavier Rolet, the chief executive of the London Stock Exchange, warned that Brexit could cost the City of London up to 230,000 jobs if the government fail to provide clear plans once Article 50 is in place.

In March, Richard Gnodde the chief executive of Goldman Sachs (NYSE:GS) said that the US bank plans to move hundreds of staff from London before any Brexit deals were confirmed. Goldman Sachs employs 6,000 people in the capital.

HSBC also have plans to move operations from London. They have plans to move up to 1,000 employees to France. Standard Chartered (LON:STAN) is rumoured to choose Dublin as its new EU base.

Such firms are hoping to set up European bases to ensure so-called passporting rights, ensured in the EU. These rights are not guaranteed for firms that choose to remain in the UK following Brexit.