London will lose up to £700 billion to financial rival Frankfurt by the end of March as banks flee the UK ahead of Brexit, a lobby group has claimed.
At least 30 banks and financial firms are set to move their EU headquarters to Germany, according to lobby group Frankfurt Main Finance.
Other banks could spread their operations across multiple cities. The number of firms setting up in Frankfurt could be as high as 37, the lobby group has claimed.
It expects up to 10,000 jobs to move to Frankfurt, which is Germany’s fifth biggest city, over the next eight years.
Lloyds, Standard Chartered and Credit Suisse are among the banks that are planning to open offices in Frankfurt because of Brexit.
Hubertus Väth, Managing Director of Frankfurt Main Finance, said: “This makes it clear for financial institutions that the Brexit is coming. While it has become somewhat less likely, the extreme scenario of a hard Brexit without a deal in place cannot be ruled out due to the uncertain majority in the British Parliament.
“On the other hand, it cannot be completely ruled out that the UK will remain in the EU, but this should be regarded as highly unlikely. The path is now set for the financial institutions. The Brexit plans are being implemented.
“Politicians made promises and delivered on them. Internationally, this is being observed very closely as it shows that the Financial Centre is being supported.
“Accordingly, Frankfurt Main Finance believes that the second-round effects will be significant.
“We stand by the potential of up to 10,000 jobs moving to Frankfurt which we estimated on day 1 after the Brexit referendum.
“However, there are signs of a second transition phase, which is expected to last until the end of 2022, and thus a further delay.
“The originally expected 5 years for the relocation of jobs from the time of the referendum in June 2016 will now become 8 years.”
