The Commonwealth Bank of Australia (CBA) has been granted a Dutch banking licence, enabling the bank to grant its clients better access to European markets.
Once operational next year, the bank’s subsidiary CBA Europe N.V. plans to serve clients from CBA offices in Amsterdam. The aim is to provide CBA clients based in Europe with better support through having a stronger EU presence.
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In addition, CBA Europe will act as a gateway to Australia and New Zealand for the Bank’s wholesale European clients, who are major contributors to Australia’s foreign direct investment, and provide a large investor base for the domestic bond market.
Andrew Hinchcliff, CBA Group Executive for Institutional Banking and Markets, said: “Being awarded a new licence in Europe means we are better placed to help both our Australian and European clients access greater capital flow and investment, essential for the growth of our economy.”
“A step closer…”
He continued: “This licence puts us a step closer to our goal of combining global connectivity and capability to help build a better Australia. Our new European head office will also enable us to share valuable international insights with our Australian clients.”
The bank expects the Dutch subsidiary to be fully operational in the first half of 2021.
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By GlobalDataHinchcliff added: “Amsterdam is the perfect choice for CBA to support its institutional clients based in Europe and offers a talented, multilingual workforce as well as a thriving fintech ecosystem. We’re currently working closely with our clients domiciled in Europe to make the transition as seamless and smooth as possible.”
CBA also said the Dutch subsidiary will help the bank to continue supporting European clients regardless of what happens in terms of Brexit. According to the bank, the Dutch arm will also supplement the existing services provided to clients of CBA’s UK subsidiary.
Last week, the Australian bank hit the headlines, for the wrong reasons, when the Australian Securities & Investments Commission (ASIC) filed a civil lawsuit against CBA for collecting higher interest rates from customers.
The regulator has begun the litigations against CBA in the Federal Court as the lender was charging higher interest on business overdrafts than what it promised to customers.
