Deutsche Bank Plans to Operate Post-Brexit in U.K. Via Branch

Deutsche Bank Plans to Operate Post-Brexit in U.K. Via Branch

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the differences between branches and subsidiaries in banking, focusing on regulatory approaches and capital requirements. It highlights the UK's strategy to retain business in the city through a branch approach, which requires less capital. The discussion also covers the impact of Brexit on banking plans, with banks considering whether to set up ring-fenced units or continue with branches. The video concludes with insights into the potential winners of capital movement, particularly Frankfurt and New York.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one advantage of banks operating as branches rather than subsidiaries in the UK?

Increased operational costs

Higher capital requirements

Lighter regulatory touch

More independence from the home regulator

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might banks be hesitant to set up a ring-fenced unit?

It is easier to manage

It requires less capital

It is cost-intensive

It offers more regulatory freedom

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategic move did Deutsche Bank make regarding its investment banking operations?

Shifted the majority of operations to London

Decided to ring-fence its UK operations

Chose Frankfurt as the hub for booking

Merged with HSBC

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the financial implication for HSBC when setting up its UK business?

It cost a billion dollars

It was completed under budget

It was funded by Deutsche Bank

It required minimal capital

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which city is likely to be a major winner in terms of capital and headcount due to regulatory changes?

Tokyo

Frankfurt

Paris

London