This should indeed give incentives to banks from third countries to establish subsidiaries in only one EU country and in this manner avoid the need to acquire more than one license in the EU. BIS central bankers’ speeches  3  Even so, the ordinary third country statues may significantly interfere with the current business models of banks.
For those foreign banks that currently use their UK subsidiaries as a hub for the European market, the UK serving as a third country would compromise their business models in the EU. Certainly, there would still be room for further bilateral agreements. Thus, German authorities could grant exemptions to foreign institutions. For banks with a British license, a more favourable supervisory treatment is conceiv-able.