Banks may be hit with additional capital needs of US$30-50b after Brexit

London

BANKS may need to find US$30 billion to US$50 billion of additional capital to support new European units in the aftermath of a hard Brexit, according to Oliver Wyman Inc. The extra money is equivalent to 15-30 per cent of the capital that wholesale banks currently commit to the region, the management consultant said in a report published on Tuesday.

In addition, operating costs could rise by US$1 billion as functions previously handled in London are duplicated on the continent, the company said.