Citigroup (NYSE: C) announced that it plans to move its European retail headquarters to capitalize on lower costs and capital requirements.
In a note to clients, Citibank said, “From a strategic perspective for Citi, moving to a single pan-European bank is expected to reduce operational and regulatory complexity, capital requirements and cost.”
According to analysts, UK rules that require banks to hold a higher level of cash in reserve than other European countries was likely to be a factor behind the move.
Citi isn’t the only the only bank that plans to move out of London. HSBC (NYSE: HSBC) announced in April it was considering moving its headquarters out of the UK.
“From our client’s perspective, it will mean we can provide a single point of entry to Citi’s EU pass ported bank for the banking products and services offered, while simplifying our legal structure and reducing complexity. The merger is fully aligned with Citi’s goal of becoming simpler, smaller, safer and stronger.”
Citi said that the change will not affect its main European investment and corporate banking units, which are based in London and employ majority of its 10,000 staff in the country.
According Reuters, a spokeswomen denied that the decision to debase in Dublin was influenced by the possibility of the UK leaving the European Union following the referendum on EU membership which is due to be held in the next two years.