The London based financial watchdog European Banking Authority (EBA), could relocate to Dublin once the UK moves ahead with plans to exit the European Union.

MEP Brian Hayes called for the move on Wednesday, following comments made by the head of the EBA that it would have to relocate if there was a vote to leave in the UK.

"The head of the EBA, Andrea Enria, is on the record saying that the EBA would have to relocate to another European capital if there was a vote to leave the EU. Given its position as a key financial services sector in Europe where many of Europe's biggest banks conduct operations, Dublin would serve as an ideal location for the European Banking Authority following a Brexit," Mr Hayes said.

If the EBA were to move from London, it would have several options other than Dublin; Frankfurt for example already hosts the European Central Bank (ECB), the European Insurance and Pensions Authority (EIOPA) and the Single Supervisory Mechanism (SSM), while Paris hosts the European Securities and Markets Association (ESMA.

However, Mr Hayes said that Dublin shares the closest similarities to London in terms of language, business environment and financial services activity and Ireland has much experience in the area, having come through “a huge period of bank restructuring since the crisis”.

Given that it is written into EU law that the EBA is based in London, a relocation to Dublin would mean a change to the legislation which would have to be approved by Member States and the European Parliament.