United States investment bank and financial services provider JPMorgan Chase & Co. (JPM) announced having merged most of its operations in the European Union to a single business entity in Germany.
The bank made this announcement on January 24 emphasizing that it took this move to make its businesses in the European continent more competitive following departure of Britain from the European Union.
By folding its EU operations into a single entity, JPMorgan will be reducing how much capital it needs to hold in total and merging different pools of liquidity.
The bank has simplified its European structure by combining its Luxembourg and Irish entities into German business JP Morgan AG. JPMorgan further adds that the new merged single entity will be among the five largest banking legal entities in Germany and it will go into the top 20 those supervised by the European Central Bank (ECB).
JPMorgan is looking forward for the newly combined EU wing to have a total capital base of $38.51 billion (34 billion euros).
Following Brexit, major U.S banks have been restructuring their European operations since it’s no longer possible to serve their EU clients out of London.