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Leading Banks Set to Leave Britain

2016-11-08 08:59:20

Some of the leading banks worldwide have embarked on the process of leaving the United Kingdom this year, highlighting the continuous impact of the Brexit vote in the country’s financial sector. But their counterparts will transfer its headquarters in the first quarter of next year.

According to British Bankers Association Chief Executive Anthony Browne, in his opinion for op-ed for British newspaper The Guardian, pointed out that the majority of global bank companies are scrambling to speed up to determine the operations they have to transfer to ensure they can still serve the needs of clients, the best time for departure, and the methodology for moving to another location.

The BBA said larger banks are rushing to finish the UK exit in the first months of 2017, while smaller banks intend to begin relocations before the Christmas season.

Browne warned if Britain fails to seal a deal with the European Union, expect Europe to lose standing in the global financial market, adding trade hurdles in the financial services throughout the country and the region will worsen.

Earlier, UK Prime Minister Theresa May said the government will ignite the Article 50 of the Lisbon pact, the process of the nation exiting the bloc. The premier added talks on certain matters such as access to the single market, recognizing the fears of businesses within the UK. She also pledged MPs a say on finalizing the EU-UK agreement.

Many of the world’s top banks are located in London, the financial hub for international business and commerce. They can access the EU through passporting, in which financial institutions can do business in any of the 28 member countries of the region without securing a license. Banks (at least most of them) fear they may lose their EU access once the British government begins formal discussions. JPMorgan Chase & Co. earlier mentioned that if the nation left the region, the firm could terminate up to 4,000 employees, presuming the passport scheme would be repealed.