UK banks are already weighing up a move to Dublin after Brexit vote

Central Bank Governor Philip Lane has said that banks have already begun exploring the possibility of moving activities to Dublin following Britain's vote to leave the European Union.

The Brexit decision may jeopardise London's right to sell financial services across Europe. 

"There has to be some level of relocation depending on how the Brexit negotiations go," Philip Lane said in an interview with Bloomberg Television in New York last night. 

"The most important point for now is that it's way too early to tell. Institutions aren't in decision-making mode yet, they are essentially doing research," he added. 

Ireland is seen as one of the favoured destinations for financial firms based in Britain that want to retain so-called "passporting" rights which allow them to do business within the EU. 

Many banking functions are jointly supervised by the European Central Bank and the local regulator, Professor Lane said. 

"If new business comes along we will be able to staff up to deal with it," he said.  

While no firms have moved operations to Ireland yet, "more of the action at this point is vis-a-vis law firms and consultants" which advise banks on their how to handle the Brexit fallout, he added said.

It will be some time before the full ramifications of Brexit are known, the Central Bank Governor told Bloomberg TV.  

"The UK has to decide what it's asking for and the EU has to respond to that request," Professor Lane said. 

From rte.ie (27/9/2016)