Post BEXIT: EU's new financial heart is expected to be in Germany
Healy Consultants Group PLC
24 January, 2017
Economists are already discussing the expected results from BREXIT on the global business, and this is not an unknown fact. Every aspect is put in perspective, before and after one of the largest economies in the World leaves the European Economic Block.
Currently, London is the heart of financial business in Europe. With abundance of financial companies operating in London, its status will surely remain the same on a global scale. The Chief Executive officer of Deutsche bank believes London will remain the biggest financial centre, potentially globally even after BREXIT.
There are potential setbacks for this, one of which is the use of cheap branch setups within the EU, currently enjoyed by UK banks and global banks having subsidiaries in London. Without this advantage, EU branches of London-based banks may need to be separately capitalized.
But within the European Union, the competition between Frankfurt and Paris, for most important financial hub, is fierce. Most bank analysts globally believe the next EU financial heart will be in Frankfurt, the banking centre of Germany. The city is further helped by the massive merger of London Stock Exchange and Deutsche Boerse. Furthermore, post BREXIT, Frankfurt has the potential to attract significant amounts of LSE derivatives trade out of London, securing its place on top of the financial food chain in EU.
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