Germany will become the new base for Lloyds Banking Group after the UK leaves the European Union, according to sources speaking to the BBC.
Lloyds, the only major British lender that does not currently have a subsidiary in another EU nation, has reportedly decided to convert its Berlin branch into a European hub. In this way, it will maintain a presence inside the EU.
According to the BBC, several British financial institutions are putting plans in place to protect their EU operations after Brexit.
With the UK likely to leave the EU single market, they want to make sure they can still cater for EU clients.
The Sunday Telegraph newspaper reported that Lloyds would apply for a new German banking licence within a few months, but the company has refused to comment.
Meanwhile, HSBC has already said it is likely to move 1,000 workers from London to its European headquarters in Paris, while the insurance market Lloyds of London recently said it was setting up an office in Brussels.
According to the BBC, various studies suggest tens of thousands of financial jobs could leave the UK after Brexit.
Authorities in Paris, Frankfurt, Luxembourg and Amsterdam have all said they would welcome banks moving operations from London when the UK leaves the EU.