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The major bank has been granted a banking licence for its Dutch subsidiary, which it said would provide better access to European markets for its institutional clients post-Brexit.
The Commonwealth Bank of Australia (CBA) has announced that it has been granted a banking licence for its Dutch subsidiary, Commonwealth Bank of Australia (Europe) N.V.
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CBA group executive institutional banking and markets Andrew Hinchliff said the licence would allow CBA to be able to grant its institutional clients with better access to European markets post-Brexit.
The Dutch subsidiary would assist CBA with supporting European clients regardless of the outcome of Brexit and will supplement the existing services provided to clients of the major bank’s UK subsidiary, it said.
Commenting on the development, Mr Hinchliff said: “Being awarded a new licence in Europe means we are better placed to help both our Australian and European clients access greater capital flow and investment, essential for the growth of our economy.
“This licence puts us a step closer to our goal of combining global connectivity and capability to help build a better Australia. Our new European head office will also enable us to share valuable international insights with our Australian clients.”
According to the major bank, CBA Europe N.V. would act as a “gateway” to Australia and New Zealand for the bank’s wholesale European clients, who it said are significant contributors to Australia’s foreign direct investment and provide a large investor base for the domestic bond market.
CBA said it expects the Dutch subsidiary to be fully operational in the first half of calendar year 2021. Once operational, the subsidiary will run from newly fitted CBA offices in Amsterdam.
“Amsterdam is the perfect choice for CBA to support its institutional clients based in Europe and offers a talented, multilingual workforce as well as a thriving fintech ecosystem,” Mr Hinchliff said.
“We’re currently working closely with our clients domiciled in Europe to make the transition as seamless and smooth as possible.”
[Related: CBA-owned fintech backs home buying start-up]
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