Skip to main content

Banks leaving Brexit Britain: How 'hard' can it be?

Tower bridge 1205058

Following UK Prime Minister Theresa May's 'hard' Brexit announcement, in which the UK is set to leave the EU single market, Associate Professor of Finance Dr Andreas Hoepner shares his thoughts on the claims that a number of key banks in the city will relocate jobs from London to other EU countries:

'Hard' Brexit and individual trade agreements may well be good for exporting goods. James Dyson and other manufacturers for instance will be licking their lips about the opening up of new export markets with potentially preferential terms. However, trade deals always come at a price and in this instance it appears that it is the export of services that will lose out. The loss of passporting rights for banks is one consequence, possibly seen as collateral damage by the Prime Minister but in reality a potentially enormous wound for the financial services sector. Banks will be relocating relevant staff to Dublin, Paris, Luxemburg or Frankfurt. Two major banks – UBS and HSBC - have now come out to tell us so. We can be in doubt no longer.

Theresa May will unlikely be able to satisfy both the interests of manufacturing in Northern England and the financial services and the city in the South. With her hand forced by public and Parliamentary pressure, she has sided with those interests that are likely to bring in more votes at the ballot box. The real loser in all of this is the UK public, whose economic welfare will no doubt suffer as the knock-on effects of this strategy start to hit home.

Published 20 January 2017

You might also like

ICMA Centre Russia Scholarship 2014

3 October 2014
The ICMA Centre is pleased to announce the ICMA Centre Russia Scholarship 2014.

WoW Conference - The Future of Money

17 July 2019
The World of Work Conference returns this year with the theme of work reimagined. ICMA Centre alumni, students and staff will be holding a session on The Future of Money: how digital is changing the way we pay. Join us on 12th September 2019 and hear insights from a range of speakers about preparing for the future world of work.
Research news

Henley Challenge 2014

20 February 2014
The Henley Challenge is an annual competition open to all students across Henley Business School, who are studying in the UK, which encourages the use of knowledge, skill and creativity. The challenge for students this year was to choose a business area studied at Henley to focus on and present to an audience of peers and academics their answer to the question: