FRANKFURT (Reuters) - Deutsche Bank (DBKGn.DE) is “uncomfortable” with the uncertainty over regulations following Britain’s departure from the European Union, a senior official at Germany’s biggest bank said on Thursday.
Sylvie Matherat, the bank’s chief regulatory officer, said normally a regulator sets the framework, and then a bank adapts to fit the mould.
But now, it’s the reverse situation, with Deutsche Bank forced to lay out its Brexit plans to regulators in Britain and Germany before there is an actual framework in place.
“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,” she said. “Normally it’s the other way around: The regulation first, and then we adapt.”
“At this stage, it’s a little uncomfortable,” she said at a conference in Frankfurt, with the chief of Germany’s financial watchdog at her side on stage.
The bank is headquartered in Frankfurt, but has large operations in London. She declined to say how many of the bank’s jobs might move from London, though in the past she has said it could be up to 4,000.
The Bank of England has said it might force EU banks such as Deutsche, which currently operate in Britain as branches, to convert their London outposts into subsidiaries, which would require additional capital.
European banks have privately warned they will have to shift thousands of people out of Britain if Brexit negotiations push the Bank of England to demand that they reinforce London operations with fresh capital.
Reporting by Tom Sims; Editing by Mark Potter