Banks pulling out of the U.K. post-Brexit would not impact Europe's financial stability, according to a top official at Germany's central bank.
Several lenders in the U.K. are reportedly exploring the possibilities of relocating at least part of their businesses operations to other European cities in order to maintain their services throughout the bloc.
"What we are interested in is that the single rule book prevails and that it doesn't really matter from a financial stability point of view whether banks who want to relocate, relocate to Frankfurt, Amsterdam, Paris or Dublin... it should make no difference," Andreas Dombret, a member of the executive board at Deutsche Bundesbank told CNBC on Friday.
"I'm pretty convinced there will be not one winner but there will be some sort of fragmentation in the relocation. We expect actually, and I personally expect, for those banks who do want to relocate to make a decision in the first half of this year," he added.
UBS, HSBC and Goldman Sachs have all warned that jobs and business operations may have to move away from London after Brexit. Dombret stressed he was confident financial markets would be able to adapt to the changes, should they occur, and that euro zone companies would not be disturbed.