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Bloomberg
Sumitomo Mitsui Financial Group Inc. has decided to set up banking and securities units in Frankfurt to maintain business in the European Union following the UK’s eventual departure from the bloc.
Japan’s second-biggest lender by market value is establishing the units to offer services “with no disruption†once Britain leaves the union, it said in a statement on Monday. Sumitomo Mitsui’s banking unit will also take steps to set up a branch in London. The plans are subject to regulatory approval.
“While the UK is expected to continue playing a significant role in the global financial sector following its withdrawal from the EU, there is still uncertainty with regard to the expected results of negotiations between the UK and the EU,†Sumitomo Mitsui said.
The Tokyo-based lender follows Japan’s Nomura Holdings Inc. and Daiwa Securities Group Inc. in choosing Frankfurt as their post-Brexit EU base, and global firms such as Morgan Stanley are also gravitating toward the city. Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. — Japan’s two other so-called megabanks — have been building their presence in Amsterdam, where they hold a banking license that gives them access to the EU.