Norinchukin bank announced plans to set up a wholly owned subsidiary in the Dutch capital, a move that critics of the prime minister’s deal cited as evidence that both a no-deal Brexit and her deal were likely to damage the UK economy.
The bank said in its statement on Friday morning that the decision had been made “in response to the planned withdrawal of the United Kingdom from the European Union, and other changes to the economic environment in Europe”.
It added that “the purpose of this establishment is to strengthen … business in Europe”, a sign that the initial move is likely to be followed by a commensurate downgrading of its presence in London.
Founded in 1923, Norinchukin is one of the 40 largest banks in the world, with a balance sheet total of €804bn. It manages about €400bn in investments for Japanese clients. Its business in London mainly works as an asset manager investing in bonds, securities, private equity and real estate.
Under the terms of the withdrawal agreement and accompanying political declaration on the future relationship, firms in the City of London will lose their “passporting rights”, which allow them to offer services across the EU from London,
The Dutch newspaper the FD reported the news by claiming that “Amsterdam will soon be a bank richer again”.
The chairman of the bank’s board, Kazuto Oku, had previously suggested he wanted to diversify the range of Norinchukin’s activities in Europe, and that the UK’s withdrawal from the EU stood in the way of London benefiting. [...]
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