London (Giulia Faloia) – Brexit brings Brexodus. More and more banks are now leaving UK due to the abandonment of European Union.
According to the Financial Times, Treasury and Bank of England are “at loggerheads” over City of London regulation after Brexit.
Chancellor Philip Hammond said he wants to keep Britain closely aligned with the EU’s rules to ensure maximum access to the European market. However the Bank is fearful of any compromise that would leave it as “a rule taker”.
There are different opinions about the kind of relationship between the two sides. According to the Daily Telegraph, they are “very, very bad”, while an unnamed Treasury source tells the Times that the department has a “very good” working relationship with the Bank.
It’s pretty clear that the situation of banks and their employees – as much as their clients – is quite critical, especially if there will be an Hard Brexit.
The Minister Dominic Raab has recently warned people about the possible scenario after a no-deal. In fact according to him customers could be faced with increased rates and major precessing times for euro transactions. He also added that payment costs by credit card between United Kingdom and European Union could increase.
According to the Minister, there could be problems for British citizens living in countries belonging to European Union. In fact, in case of an Hard Brexit the same customers could loose the possibility of accessing deposit and loan services and insurance contracts.
British banks have already started to leave Great Britain and probably more and more will follow.
One of the greatest and latest blow to the British economy was the one by Hsbc. In fact the bank has announced that its activities will be transferred to Europe, in France. The seat in London will loose the control on seven European branches: Belgium, Czech Republic, Ireland, Italy, Luxembourg, Netherlands and Spain.
The list of the banks that will leave United Kingdom is destined to get longer. The destinations will mainly be Germany, France, Spain, Ireland and Denmark.
The match between London and Bruxelles is still opened and the possibility to end it with a no-deal is more and more close. Meanwhile Brexodus is real.