The Bank of London has applied for a European Union banking licence and committed to €200 million investment and hiring 300 people in Luxembourg over the next five years.

The formal application has been jointly lodged with the European Central Bank and Commission de Surveillance du Secteur Financier in Luxembourg.

The jobs will include management, compliance, risk, product development and business control, technology and operations.

The Bank of London, powered by its patented technologies, has a unique business model that actively protects its depositors’ funds by never lending, leveraging or investing these deposits. 

By choosing Luxembourg as its EU headquarters, it says there is an exciting opportunity to offer the EU market a new global digital clearing ecosystem for financial institutions and corporate commercial clients.

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“This is a major milestone for our business and follows the foundation established in the UK,” said Norbert Becker, chairperson of the European Union region for The Bank of London. 

“Luxembourg is perfectly positioned to play a key role in driving the bank’s European business forward, and ensuring Luxembourg is the centre of clearing for the EU.”

The Bank of London boasts Luxembourg-based Mangrove Capital Partners as one of its key shareholders.

Guy Hoffman, chairman of The Bankers’ Association in Luxembourg, said: “Luxembourg’s digital technology programme was specifically set up to help businesses and consumers and the potential for The Bank of London’s unique offering is enormous.”

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