ASSESSMENTS

Banking After Brexit: Who Will Be the New London?

Oct 30, 2018 | 12:17 GMT

The skyline in London is all aglow as the sun sets on Aug. 16, 2018. While Brexit will weaken London's standing as a financial services center, the city will remain one of Europe's power players.

(DAN KITWOOD/Getty Images)

Highlights

Because of Brexit, companies in the United Kingdom's financial services sector will move some of their activities and staff to the European Union to continue operating in the single market.
No single EU financial center will "replace" London, because several cities are suitable for various companies moving jobs and operations out of the United Kingdom.
Europe's post-Brexit financial system will become more fragmented, and multiple competing financial poles could make the system less efficient.

The United Kingdom's approaching departure from the European Union in March 2019 has raised concerns about how the split will affect London's bustling, heavily influential financial sector. The British government is currently focused on two negotiation topics: making sure that trade in goods remains unaffected by Brexit and ensuring that the border between Northern Ireland and the Republic of Ireland remains open. The European Union has offered the United Kingdom a comprehensive free trade agreement similar to the one it recently signed with Canada. However, both proposals focus primarily on goods, leaving companies in all service sectors -- and especially the financial sector -- with open questions about Brexit's impact....

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