London is predicted to lose up to 800 billion euros ($909 billion) of assets by March next year, as banks move their business operations to other hubs before Brexit takes place.
Lobby group Frankfurt Main Finance (FMF) released the figure last week, which it calculated based on a confirmation that 30 financial institutions had applied to the European Central Bank to move their headquarters to Frankfurt. It claimed this number would be higher by March and continue to increase beyond Brexit.
The 800 billion euros being moved out of London relates to balance sheet assets such as cash, inventory and prepaid expenses. FMF told CNBC via email that companies were moving those assets from London to Frankfurt so that new offices could meet minimum operational and regulatory requirements.
In the report, FMF Managing Director Hubertus Vath said uncertainty was forcing banks to relocate selected business divisions or their entire businesses out of the U.K. “As long as uncertainty persists, most institutions are likely to prefer the minimum solution. In any case, it is clear that considerable second-round effects will follow,” he said.