British banks seeking to maintain its access to the euro zone after Britain leaves the EU next year should apply for a license by the end of the second quarter 2018, the European Central Bank (ECB) announced on Wednesday.
ECB board member Sabine Lautenschlaeger told a news conference, “We cannot be sure whether the transition period will really happen,” in a warning to UK and UK-based banks not to be complacent.
“Any bank that wishes to relocate from the UK to the euro area should really have submitted its licence application already,” she said. “But if it hasn’t, it should do so by the end of the second quarter of 2018 at the latest.”
Only eight banks have so far submitted applications for licences to operate in the euro zone post-Brexit. A further four companies have announced their intention to do so.