Citigroup stated on Friday that it plans to shift the head office of its European retail banking operation from UK to Dublin so that it can benefit from lower costs and capital requirements. Analysts say that the London regulatory rules that require banks to hold a higher level of cash in reserve than other European countries could be a factor. There are also suggestions that the move may be due to uncertainty over the London’s membership of the EU, since Ireland’s position as a Eurozone member is not in doubt. This is the first instance of a stated move from the London due to a more attractive regulatory environment elsewhere in the EU.
Citigroup stated on Friday that it plans to shift the head office of its European retail banking operation from London to Dublin so that it can benefit from lower costs and capital requirements. Analysts say that the UK regulatory rules that require banks to hold a higher level of cash in reserve than other European countries could be a factor. There are also suggestions that the move may be due to uncertainty over the UK’s membership of the EU, since Ireland’s position as a Eurozone member is not in doubt. This is the first instance of a stated move from the UK due to a more attractive regulatory environment elsewhere in the EU.