Table of contents

  1. Introduction
  2. Global financial centre
  3. Bank survey
  4. Britain’s decision
  5. EU rules and London decision
  6. Survey results
  7. Regulatory change 
  8. Conclusion
  1. Introduction 

Banks expect London to remain a top financial centre, says survey

The City of London financial district can be seen as people walk along the south side of the River Thames, amid the coronavirus disease (COVID-19) outbreak in London, Britain, March 19, 2021. 

  1. Global financial centre 

London will remain a leading global financial centre despite uncertainty over regulation due to Brexit, Lloyds Bank‘s annual sentiment survey of financial firms showed on Monday.

Britain fully left the European Union, its biggest single export customer, in December last year, with thousands of jobs and billions of euros in daily trading moving from London to the continent, raising concerns about the capital’s clout in global finance.

  1. Bank survey

But the survey of more than 100 banks, asset managers and insurers showed that more than two-thirds believe that London will remain a top centre.

“It seems sensible to conclude that, while London’s status has taken a knock due to Brexit, it will remain one of the world’s leading financial centres,” the survey said.

Brexit led to the UK financial sector being cut off from the EU and the survey showed that 42% believe a resumption of access won’t happen until 2023 or later, while almost a third said it will never happen.

  1. Britain’s decision 

Regulatory change is seen as the biggest threat, consistent with the “ongoing uncertainty” over the shape of regulatory reform many months after Brexit, the survey said.

With little prospect of EU access, Britain’s finance ministry set out a welter of reform proposals that have yet to be implemented.

  1. EU rules and London decision 

The survey showed splits, with some firms saying that competitiveness will improve due to divergence from EU rules, while others said competitiveness will worsen because of such divergence.

London will remain a leading global financial centre despite uncertainty over regulation due to Brexit, Lloyds Bank’s annual sentiment survey of financial firms showed on Monday.

Britain fully left the European Union, its biggest single export customer, in December last year, with thousands of jobs and billions of euros in daily trading moving from London to the continent, raising concerns about the capital’s clout in global finance.

  1. Survey results

But the survey of more than 100 banks, asset managers and insurers showed that more than two-thirds believe that London will remain a top centre.

“It seems sensible to conclude that, while London’s status has taken a knock due to Brexit, it will remain one of the world’s leading financial centres,” the survey said.

Brexit led to the UK financial sector being cut off from the EU and the survey showed that 42% believe a resumption of access won’t happen until 2023 or later, while almost a third said it will never happen.

  1. Regulatory change 

Regulatory change is seen as the biggest threat, consistent with the “ongoing uncertainty” over the shape of regulatory reform many months after Brexit, the survey said.

With little prospect of EU access, Britain’s finance ministry set out a welter of reform proposals that have yet to be implemented.

The survey showed splits, with some firms saying that competitiveness will improve due to divergence from EU rules, while others said competitiveness will worsen because of such divergence.

Regulatory change is seen as the largest menace, in keeping with the “ongoing uncertainty” over the form of regulatory reform many months after Brexit, the survey mentioned.

With little prospect of EU entry, Britain’s finance ministry set out a welter of reform that says which have but to be applied.

The survey confirmed splits, with some corporations saying that competitiveness will enhance due to divergence from EU guidelines, whereas others mentioned competitiveness will worsen due to such divergence.

  1. Conclusion

Absolutely the European Union, its greatest single export buyer, in December final yr, with hundreds of jobs and billions of euros in each day buying and selling shifting from London to the continent, elevating considerations in regards to the capital’s clout in world finance.

About the Author

BankReed Admin

Banking Professional with 16 Years of Experience. The idea to start this Blogging Site is to Create Awareness about the Banking and Financial Services.

View All Articles