Lloyds Bank‘s annual sentiment survey of financial firms showed that, despite uncertainty over regulation due to Brexit, London will remain a leading global financial centre. Britain fully left the European Union, with thousands of jobs and billions of euros in daily trading moving from London to the continent.
On the other hand, 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. The survey says that it seems sensible to conclude that, while London’s status has taken a knock due to Brexit. But still, it will remain one of the world’s leading financial centres. Brexit led to the UK financial sector being cut off from the EU. 42% believe a resumption of access won’t happen until 2023. And, almost a third said it will never happen, as per the survey. The biggest threat is the regulatory change.
Britain’s finance ministry, with this little prospect of EU access, is setting out a welter of reform proposals. They are yet to be implemented. Splits with some firms says that the competitiveness will improve due to divergence from EU rules, as per the survey. And some others says that the competitiveness will worsen because of such divergence.