BERLIN, May 9 (Xinhua) -- German Federal Financial Supervisory Authority (BaFin) is in talks with multiple financial firms applying for bank licensing in Germany as a reaction to Great Britain's Brexit vote.
More than 20 banks operating in Great Britain have contacted the BaFin, over ten already expressed interests in relocating to Frankfurt, BaFin's Chief Executive Director of Banking Supervision Raimund Roseler said Tuesday at an annual press conference in Frankfurt.
Roseler expects the applications for a bank license in the second half of 2017.
London banks require an independent subsidiary located in Europe to continue operating within the 27 remaining EU states after the Brexit in March 2019. This is why the financial firms are moving their business activity from Great Britain to the European mainland.
Paris and Dublin are also potential location candidates, since most large firms follow a strategy of "not putting all eggs in one basket", said BaFin President Felix Hufeld. Still, Frankfurt plays a major role in this scenario, according to Hufeld.
Hufeld warned against the demands of many French and German politicians to relocate the derivative transactions to Europe as well.
These solutions "seem interesting on the first glance, but on the second glance could cause protectionist collateral damage", Hufeld said.
