Frankfurt expects 10,000 jobs as Brexit pushes banks out of London

Pedro Gonçalves
Frankfurt expects 10,000 jobs as Brexit pushes banks out of London

German industry leaders predict that 10,000 new jobs will be created in Frankfurt because of Brexit.

Frankfurt Main Finance, the German city's lobby group, said 30 out of 37 financial institutions which have applied to the European Central Bank for new licences, or to extend existing ones, have chosen Frankfurt for their European headquarters.

Banks are also set to transfer assets worth around €800bn (£712bn), according to lobby group.

"The majority [of the assets] will be transferred in the first quarter of 2019," said Hubertus Väth, the managing director of Frankfurt Main Finance. He estimates that Germany's largest lender Deutsche Bank, which will move parts of its investment bank operations from London to Frankfurt, will account for up to a third of the total increase in Frankfurt-based assets.

At the moment, the lenders who are already based in Frankfurt hold around €3.5tn in assets in the city.

As it currently stands, banks face the decision of either relocating only what is absolutely necessary or preparing for the relocation of their entire business.

"As long as uncertainty persists, most institutions are likely to prefer the minimum solution. In any case, it is clear that considerable second-round effects will follow."

He still expects up to 10,000 jobs will move to Frankfurt but anticipates that will take eight years, as opposed to five, for jobs to relocate.

"We stand by the potential of up to 10,000 jobs moving to Frankfurt which we estimated on day one after the Brexit referendum," he added.

Bank of England deputy governor Sam Woods noted earlier this year that he estimated between 5,000 and 10,000 jobs - and "probably towards the lower end" of that range - would be created across the Continent for banks and insures by March 2019.