Banks based in the UK may find their operating costs rise between 2% and 4% after Brexit, due to the duplication of departments on the continent required to comply with European Union regulations, according to a report released by consulting firm Oliver Wyman.

The functions most likely to be replicated are “control areas such as risk, compliance and finance, equivalent to around $1 billion, £756 million, across the industry”, the report says.

Banks intend to minimise the initial expense and