Macquarie Group Limited (ASX: MQG) has been planning to bring an EU center in Dublin and is waiting for the approval from European as well as Irish banking regulators. Macquarie Group has chosen Dublin over other cities which were Paris, Frankfurt Amsterdam, Luxembourg as well as Brussels. The major Australian newspaper is of the view that it has had talks with the Central Bank of Ireland as well as the European Central Bank in regard to the grant of the banking license. Macquarie is required to come up with the regulatory unit which should be independent. It needs to be within the European Union or EU so that it can have the passport rights. The bank needs to satisfy the regulators. In order to do that, Macquarie Group needs to have its own functioning departments like HR (Human Resources), Risk as well as Finance.
Macquarie Group does not plan to involve a lot of migration of the staff. Most of the bank’s over 1000 staff (if not all) which are currently employed in the offices which are situated in Edinburgh as well as London would most probably stay. This is because activities which are being controlled by these offices are focused on Great Britain. These activities include infrastructure investment, leasing, advising capital markets as well as the green investment bank. However, the bank is expected to encounter a hurdle of developing an executive team which would be working in the EU center which is far away from the Macquarie’s headquarters based out in London. This structuring of the executive would also be done by other banks which are based in Britain and are planning to come with the full operational setup within the European Union.
The major Australian financial newspaper is being informed by the executives of other financial services companies that the European regulators are taking up the flexible approach for the companies which are based out in London and are required to come up with new and fresh operations in the European Union. As per the website of the Central Bank of Ireland, the process is comprised of numerous stages. In the exploratory phase, the applicant which is planning to open the operations, after getting through with the initial detailed discussions involving the Central Bank, would be required to submit the proposal to the central bank so that it can be reviewed. The Irish bank, as well as the European Central Bank, would be considering the proposal so that it can analyze that whether or not the required standards have been met. It can also return the applicant so that it can bring the information which is required.
Macquarie Group Limited ended the session at A$117.870 per share which implies the rise of A$0.670 per share or 0.572%. The stock price of a bank is trading marginally towards its higher range and it has a market capitalization of $39.89 billion. Its annual dividend yield stood at 4.48%. Over the past 6 months, it has delivered a return of 8.80%.
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