In a bid to thwart business disruption post Brexit, Swedish lender Handelsbanken has transformed its UK branch into a wholly-owned subsidiary.
“This change means that Handelsbanken is creating a strong basis and a long-term platform to support the Bank’s UK customers, regardless of the outcome of Brexit,” the bank said in a statement.
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The bank also said that the move will not impact its CET1 ratio, which currently stands at 21.7%.
In the UK, Handelsbanken has more than 200 branches. The lending activities of the bank in the region are said to have increased by 327% in the last decade. During the same period, the lender’s deposits are said to have grown by 886% in the region.
Several banks are restructuring their operations in Brexit contingency planning.
In October 2018, Citigroup unveiled plans to launch a new UK bank headquartered in London for its consumer banking operations as part of its Brexit strategy.
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By GlobalDataIn August this year, HSBC said that it will move two of its European subsidiaries to France from the UK.
Earlier this year, Lloyds reportedly said that it will manage three subsidiaries in continental Europe following Brexit.
Meanwhile, Bank of England directed banks in the UK to hold adequate capital buffers in preparation for Britain’s exit from the EU bloc next year.
