Lloyds Finding Ways Around Brexit

(RTTNews) - Lloyds Banking Group reportedly plans to start a subsidiary in mainland Europe in order to maintain access to the European Union's single market after the Brexit.

The London-based bank is preparing to set up a subsidiary in either Germany or the Netherlands, according to Financial Times.

Lloyds is the only major bank without any subsidiary in an EU country, however, it already has offices in Frankfurt and Amsterdam.

The decision to start a subsidiary stems from the European Union's ongoing process to tighten rules for subsidiaries of non-EU banks. Subsidiaries typically cost more to run compared to branches as they are fully capitalized separately from the parent bank.