Financial Times
European banks could be forced to put as much as €40bn of extra capital into their UK branches as a result of the country's decision to quit the EU.
A BCG report says Brexit will trigger an 8-22 per cent rise in annual costs for the banks' capital markets divisions and says this may prompt lenders to withdraw from some activities. Foreign banks' London operations have been thrown into turmoil by the UK's leave vote, since they could lose the "passports" that enable them to do business across the entire 28-country bloc if they are licensed in one. "Everyone is talking about the US banks' perspective, but the European banks are going to be more impacted," said Philippe Morel, one of the report's authors.
