The Bank of London has submitted a formal application for a European Union Banking Licence.

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

The bank has also committed to an investment of €200 million in Luxembourg and across the wider EU.

It will also create jobs for around 300 people in Luxemburg over the next five years in areas including compliance, risk, technology and operations.

By establishing a presence in the EU, the bank said it will be able to support businesses in the single market and wider European trading block.

According to the bank, it has a unique business model that “actively protects its depositors’ funds by never lending, leveraging or investing these deposits”.

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

The bank added that it aims to offer financial institutions and corporate commercial client's access to its global digital clearing ecosystem.

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

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