More than 40 financial institutions choose Amsterdam after Brexit

Amsterdam is one of five cities that managed, after Brexit, to attract most financial institutions.

A new report by the British think tank New Financial from London says the UK’s exit from the European Union has more dire consequences for London than previously anticipated. More than 440 financial services companies have transferred a portion of their business operations or their employees to the European Union. The largest banks have already transferred 900 billion pounds (more than 1000 billion euros) in assets.

Serious underestimation

Although London will remain the most important financial center in Europe for the time being, the city is losing influence because more of its trade is under European supervision. According to the researchers, the number of flights is “seriously understated” and is likely to increase even more in the near future.

In the competition between European cities – when it comes to bringing in financial service providers – Dublin emerges as the big winner. Irish capital accounts for a quarter (135) of removals. Paris is ranked fifth (102). In the top five were Luxembourg (95), Frankfurt (63) and Amsterdam (48), respectively. The Dutch capital may, among other things, welcome the US asset manager BlackRock and the Royal Bank of Scotland.

Researchers estimate that all of these migrations will affect at least 7,400 jobs. This figure is based on information from seventy institutions. Large investment banks soon need a few hundred employees for a new fortified city. RBS relocation to Amsterdam will involve around 150 jobs.

Different dynamics

William Wright, director of New Financial, expects the European stake to rise further, in part due to the numerous transfers of European trade offices to the European Union. “If the UK share falls below 50% in the future, a very different dynamic could emerge.” However, he does not expect this to happen in the short term.

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Wright also warns that London is in danger of losing its job as a European hub, but at the same time he argues that this does not mean that the British capital’s role as a global hub is in jeopardy. “If a US bank wants to do business with a Japanese bank, it will continue to do so through London.”

However, he is seeing clear signs that the ratios are changing. This can be seen in decisions like those of Japan’s Norinchukin Bank and the insurer Lemonade, both of which have settled in Amsterdam. “Five years ago, companies like this would never have thought of Amsterdam and would automatically go to London.”

Read also: British bankers were convinced that London would remain the financial heart of Europe

Megan Vasquez

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