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05/12/2016

72% of UK bankers think London will keep ‘financial centre status’ post-Brexit

UK & Europe

72% of UK bankers think London will keep ‘financial centre status’ post-Brexit

The City of London financial district, which is now seeing threat post-Brexit to its dominance from rivals such as Frankfurt.

[Wikipedia]

Almost three-quarters of British bankers believe London will still be the financial centre of Europe in five years’ time, despite risks surrounding Brexit, according to a study published
Wednesday (2 November).

US financial services firm Synechron, which carried out the research with the TABB Group, said it questioned 80 capital markets executives in banks based in Britain.

Of those surveyed, 72% thought that London would remain the heart of the European financial system in the years to come, despite many anticipating increased compliance costs and red tape because of Brexit.

Big banks have publicly voiced their fears about the impact of Britain leaving the European Union, including potential loss of access to the European single market.

The powerful British banking lobby has even warned that international banks based in Britain are ready to transfer some of their activities out of the country from early 2017.

Frankfurt woos London banks after Brexit vote

A German politician said on Thursday (18 August) he was trying to persuade foreign banks to make Frankfurt their home after Britain’s vote to leave the European Union, and outlined how Europe’s biggest economy wants to bolster its financial capital at London’s expense.

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The study shows that 55% of banks have put in place “Brexit steering committees” to prepare for life outside the European Union.

Synechron estimates that it would cost banks an average of £50,000 (55,000 euros) per employee to relocate staff from London to another European financial centre.

While some banks are “already considering relocating staff to other cities around Europe”, the majority of bankers questioned remain optimistic, “painting a very hopeful picture of the future”, said Tim Cuddeford, a director at the firm.

Frankfurt charm offensive for Brexit-wary London firms

The marketing team of Frankfurt never expected its English-language dummy website to attract new businesses would actually go live after Britain’s European Union referendum.

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