UK banks are actively planning moves across the Irish sea

Philip Lane says financial companies are doing their research ahead of potential re-locations to Ireland...

UK banks are actively planning moves across the Irish sea

Rolling News

Central Bank Governor Philip Lane has said that banks are already actively considering moving their business activity from the UK to Ireland following its decision to leave the EU.

"The most important point for now is that it's way too early to tell. Institutions aren't in decision-making mode yet, they are essentially doing research," he told Bloomberg Television.

"There has to be some level of relocation depending on how the Brexit negotiations go," he added.

No firms have come to Ireland yet - but Mr Lane says that the groundwork is being laid. Companies in Ireland are regulated by both the Irish Central Bank and the ECB - the official said that staff in Dublin are equipped to deal with an influx of business from the UK.

He added that Ireland wants a "win-win" outcome to the UK's exit negotiations.

Mr Lane highlighted both the strength of Ireland's recovery and the fact that the economy is exposed to external shocks:

"There is nothing on the horizon now to say that there will be a significant reversal but we know Ireland is a small open economy," he said speaking in New York.

The Irish Governor said that he believes that the ECB's stimulus attempts are yielding results.

Meanwhile, ECB President Mario Draghi has warned that the EU cannot afford to give the UK a soft exit deal.