Chinese bank leaves London for Luxembourg

 
 

The European Court of Justice is one of Luxembourg's most famous sights. Photo credit - Pixabay

 

China Everbright has revealed plans to move its European operation from London to Luxembourg

 

I once spent a month living in Luxembourg. You can actually see my hotel room in the picture at the top of this article.

It's a beautiful place, but it's also expensive to live there. So, after finishing every evening, thousands of workers drive across the border to nearby Germany, where they find it's cheaper to be based. 

The result of this is that Luxembourg can be very quiet in the evenings and at weekends (there is a point to this story, I promise you).

One weekend, my friends and I were a bit bored, so we searched on the internet for 'things to do in Luxembourg.'

In all seriousness, number seven on the list that we found was to 'visit an ATM.' We then spent the weekend taking pictures of ourselves at as many ATMs as we could find.

Anyway I mention all of this because the banking industry has always been important to Luxembourg, but it's about to become even more so.

That's because China Everbright has revealed plans to join a number of other banks in moving EU operations from London to Luxembourg as a result of Brexit.

Amongst the other banks to have similar plans are Agricultural Bank of China, Bank of China, and China Construction Bank.

Some commentators in the UK have seen these moves as a sign of falling confidence in the UK economy.

In reality, however, they're simply moved that have become necessary in light of the UK's vote to leave the EU.

It's possible that the country will lose so-called 'passporting rights' across the continent - which will mean that EU banking operations simply can't be based in the UK,

Whether that will actually happen remains uncertain - and it's become clear that that uncertainty is simply not acceptable to financial institutions.





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