How ‘Brexit’ Could Alter London, the World’s Banker

2023-10-15 10:44:35

About one fifth of global banking transactions are taking place in the UK, most of which are taking place in London.

The data as of the third quarter of 2016 is the total invoiced amount (financial asset with corresponding liability) of the financial company located in each country regardless of nationality. The data of the United States is the total asset at the end of 2016. Source: International Settlement Bank, US Federal Deposit Insurance Corporation

New York is mainly focused on the US market, but in London, from the fund manager of France to the prince of Saudi Arabia, and to the millionaires of China, in response to the worldwide customer base, the interest in the world is raised It is.

Most of the business in London is related to Europe, and these transactions may actually become illegal after Brexit.

Note: * Switzerland does not belong to the European Union, but it complies with many EU banking regulations. † Britain's crown is different. In the charter of Luxembourg and Cyprus, the market share of G.D.P. in the banking sector is omitted because relatively small countries make their share unmatched. | Source: Economic Cooperation and Development Organization; Bank for International Settlement

At the upper limit of the estimate, there is a possibility that up to 80,000 financial positions will be separated in the next two years.

Holders - Many of them are the most trained and educated people in society - they are responsible for building the best Brexit. This means good Brexit in London and Cambridge, good Brexit in Boston and Peterborough, good Brexit in Scotland and Gibraltar, and good Brexit in other parts of Europe and the world. In order to do this, you need to cross the rest - leaving a split

In any reasonable case, London will continue to be an important financial center. It survived in the 1930's and in the two world wars. It will survive Brexit. But within the EU it is becoming one of the two most important financial centers in the world with undeniable financial centers in the world. After Brexit, it is likely to become an offshore center, especially susceptible to policy decisions elsewhere, especially regulatory decisions by the euro area. In any case, by abolishing paycap, relaxing capital requirements, generally removing the regulatory burden of the EU, securing and further attracting talented persons in the alternative asset industry such as hedge funds I can. EU is not affected by lost passport

London City and other services are warning about the potential impact of Brexit. They are concerned that in some cases of Brexit, service trade may be compromised, especially if a British company loses the right to directly sell the service to the EU. If the government wishes to secure "equal rights of passport" and regulatory authority, it may mean a compromise in other aspects such as the ability to manage immigration. This is only one of the trade - offs that the government must balance to determine the position of negotiations. As proposed in the yesterday 's discussion at the House of Representatives, the government also needs to clarify the position and purpose of the next negotiation to reduce the uncertainty faced by the UK' s service industry.