Bankers believe that Brexit hasn’t slowed down the markets
The representatives of the financial services sector report that the results of the referendum in the UK, where the country’s citizens expressed their desire to leave the European Union, hasn’t slowed down the markets so far. Today, banks are working on programs that mean banking operations moving to continental Europe if the United Kingdom does not agree on the exit to a single market after Brexit.
Alex Wilmot-Sitwell, president of Bank of America Merrill Lynch in Europe gave the following commentary: “I do not think that there is a significant negative impact.” “The significant impact on the activity is not being observed so far,” – said HSBC Chairman Douglas Flint during his speech in the House of Lords committee. Banks in the UK need a “passport” of the European Union in order to maintain services to their customers from other European countries. Lenders are worried about the fact that this right will be lost after the UK withdrawal from the EU.
Flint said that the financial stability could be at risk if “to start playing” with an interval of operations – from those that can be produced from a single center. Wilmot-Sitwell noted that the financial sector was not “Lego”, from which you could withdraw pieces and rearrange them without affecting the clients and financial stability.
Elizabeth Corley, vice chair of Allianz Global Investors noted that the sector was careful about the free flow of funds. The three representatives of the sector reported that London had some advantages. These benefits are related to the possibility to carry out a wide range of financial services from a single center. It makes the procedures easier and cheaper for customers throughout the euro zone and beyond its borders. Moreover, changes in the London financial “ecosystem” can threaten the financial stability and destroy the new rules set by regulators after the crisis of 2007-2009, said Flint.