JPMorgan merges EU operations

JPMorgan Chase & Co. has combined most of its European Union companies into a single organization in Germany, the company announced on Monday, in an effort to make its business in the union more competitive following Britain’s exit.

The bank claimed it streamlined its European structure by combining its Luxembourg and Irish businesses into JP Morgan AG in Germany.

The new combined business, according to JPMorgan, “will be among the five largest banking legal entities in Germany” and will be among the top 20 overseen by the European Central Bank.

It stated that its overall capital base would be approximately 34 billion euros ($38.51 billion). Because they can no longer serve EU clients out of London, major US banks have started revamping their European businesses.

By consolidating much of its EU operations into a single entity, JPMorgan will be able to operate at a lower cost by decreasing the amount of capital it has to hold overall and integrating multiple liquidity pools.