The Bank of London formally submits application for EU banking licence
The Bank of London has formally submitted its application for a European Union (EU) banking licence as it looks to establish a new base within the continent.
The firm will invest €200 million in Luxembourg and across the wider EU
The European Central Bank and Commission de Surveillance du Secteur Financier (CSSF) have jointly lodged the submission in Luxembourg.
The announcement has been accompanied by the firm’s commitment to invest €200 million in Luxembourg and across the wider region to support its growth across the EU.
The move to set up a new base of operations in the country is also expected to contribute towards the creation of 300 new jobs, including positions in management, compliance, risk, product development, business control, technology and operations.
Nicolas Mackel, CEO of the financial development agency Luxembourg for Finance, describes the firm’s latest decision as “an enrichment for Luxembourg’s financial services ecosystem” and “testimony to its attractiveness for such a technology-based operator”.
In addition to this, Guy Hoffman, chairman of The Bankers’ Association in Luxembourg, views the potential for The Bank of London’s offering as “enormous”.
The Bank of London is a unique offering within the industry, in that it never lends, leverages or invests its deposits, keeping them protected.
By choosing Luxembourg as its EU headquarters, there is a new opportunity to offer Luxembourg and the broader EU market a global digital clearing ecosystem for financial institutions and corporate commercial clients.
Norbert Becker, chairperson of the EU region for The Bank of London, says Luxembourg is “perfectly positioned to play a key role in driving the bank’s European business forward” and will provide a centre for clearing in the EU.
The Bank of London boasts Luxembourg-based Mangrove Capital Partners as one of its key shareholders and has also recently completed a $40 million Series C extension.
