It could take European Union banks up to five years to overhaul their operations and acclimatise to a new post-Brexit trading landscape, according to a new report commissioned by the Association for Financial Markets Europe (AFME).
While yet to be fully released, the report, conducted by PwC, features interviews from 15 AFME members, some of the world's largest investment banks, and is thought to be the most in-depth analysis of the future of the EU banking industry since the U.K.'s shock Brexit vote.
It suggests that it could take banks up to three years or more to transition to a new business environment. This is on top of the two-year negotiation period scheduled once the U.K. triggers Article 50 and formalises its intent to leave the EU.
The report garners feedback from banks spanning a range of sizes and activities and covers an even split of EU27 headquartered, UK headquartered and non-EU headquartered banks.