RBS applies for German banking licence amid no deal Brexit fears

With the licence, RBS said it plans to upgrade its current branch in Frankfurt with a new unit.

The still more than 60 per cent state-owned bank, which already has a Dutch licence, said it and a German licence would allow it to continue operating freely across the EU.

RBS announced last month that it is to shift £13bn worth of business to the Netherlands in the event of a no-deal Brexit.

About a third of the customers for its investment banking unit, NatWest Markets, will move to the lender’s new Dutch subsidiary by 4 March.

The Edinburgh-based lender said an expanded Frankfurt unit will be responsible for processing and settling euro-denominated payments and offering loans to large German companies.

It would also allow RBS to maintain its ties to Germany’s central bank and continue benefiting from passporting rights that give financial services firms cross-border access to EU clients.

The move applies to all RBS subsidiaries, but would only affect NatWest, which trades across the bloc.

No jobs are expected to be moved through the plan, but 12 positions will be created in Frankfurt.

Some 37 UK based financial institutions have applied to the European Central Bank for new licences, or to extend existing ones, ahead of Brexit.

Of these, 30 have chosen Frankfurt as their European base, with about €800bn (£711bn) of assets expected to be moved to the city before Britain quits the bloc on 29 March 2019.