The Strategist

Bloomberg: London will remain the world's financial capital

11/14/2017 - 14:06

Businessman and former Mayor of New York Michael Bloomberg believes that London will remain the global financial capital after Brexit.

Lewis Clarke
Lewis Clarke
"New York is the financial center of the United States. London will long remain the financial center of Europe in the foreseeable future. It has what the financial industry needs", - quoted by BBC. According to Bloomberg, Britain's withdrawal from the EU is likely to slow the growth of capital, but the benefits of London as a financial center will still remain.

"The growth rate of London as a financial center, of course, will not be the same as if Brexit did not take place," Bloomberg said.

Earlier, Bloomberg said that Brexit is a “single stupidest thing any country has ever done”.

Meanwhile, many financial institutions located in London are deciding where they should do business after the UK withdraws from the EU. About 50 of them are already considering the possibility of moving.

The upcoming exit of the UK from the European Union forced about 50 foreign banks in London to discuss the possibility of their moving to other European countries with the leadership of the European Central Bank (ECB). "Some of them have already visited us repeatedly to discuss plans for their relocation," Danièle Nouy, head of the ECB's supervisory structure for banks in the euro area, told. According to her, 20 banks have already applied for a license for the euro area.

To provide services in the territory of the European Union, financial institutions need subsidiaries, that is, legally independent banks, located in one of the EU countries. The Brexit procedure, which should be completed by the end of March 2019, raised the question of where to do business after the United Kingdom leaves the European Union.

According to different experts, several thousand to several tens of thousands of employees of the banking sector can move from London to Frankfurt am Main. Several foreign financial institutions, including those from Japan, have finally decided to settle in Germany.