Post by Sapphire Capital on Oct 31, 2012 4:09:30 GMT 4
China's major state-owned banks are shifting their European operations from London to Luxembourg in a bid to get away from the tougher rules in the City, reported the Financial Times.
The banks are reported to have complained in a letter to the UK Treasury that the uneven regulations and "rigorously demanding" liquidity rules have prompted them to move out.
"They are finding it increasingly difficult to operate in the UK under the current regulatory environment," read the letter, written by the Association of Foreign Banks, on behalf of the banks, reported FT.
Chinese government backed banks such as the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Agricultural Bank of China (ABC) had expanded to London since the early days of the financial crisis.
The letter said that one bank had already started doing three times more business through Luxemburg than London, FT added. A number of other banks are planning to follow suit, considering the easier regulations in the country.
The banks are reported to have complained in a letter to the UK Treasury that the uneven regulations and "rigorously demanding" liquidity rules have prompted them to move out.
"They are finding it increasingly difficult to operate in the UK under the current regulatory environment," read the letter, written by the Association of Foreign Banks, on behalf of the banks, reported FT.
Chinese government backed banks such as the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and Agricultural Bank of China (ABC) had expanded to London since the early days of the financial crisis.
The letter said that one bank had already started doing three times more business through Luxemburg than London, FT added. A number of other banks are planning to follow suit, considering the easier regulations in the country.