Lloyds Bank (LLOY) +1.55%, one of the largest financial institutions in the UK, has published their annual sentiment survey of financial firms. According to Reuters the survey showed that London will remain a global financial centre.
Britain officially left the European Union on 31. December 2020. The EU was the UKs biggest single export customer and the nation’s exit meant thousands of jobs and billions in daily trading have left the UK capital for cities on the continent.
However, the Lloyds survey questioned over 100 banks, asset managers and insurers and two thirds believe that London would remain a top centre. The result is surprising, considering the regulations between the UK and EU post-Brexit are still unsure.
The survey read: “It seems sensible to conclude that, while London’s status has taken a knock due to Brexit, it will remain one for the world’s leading financial centres” (Business Insider, 2021). Additionally, 42% of Lloyd’s questionees stated they do not think that resumption of access to the EU will happen before 2023.
The “ongoing uncertainty” (Business Insider, 2021) over how the UK will be regulated now that they are no longer bound to the EU rules on finance, is seen as the biggest threat to London’s status a major financial hub.
Due to the loss of access the European Union, Britain’s leaders will need a lot of positive reform to keep up. Nothing has been set in stone yet, though the Treasury hopes to be able to attract staff from around the world and overtake New York’s status within 5 years.
The divergence from the EU can be seen in two lights, either as a positive that will drive competitiveness or as a hindrance to competitiveness, having lost access to a set customer base in EU countries.
The survey conducted by Lloyds showed this sentiment reflected in the answers of those questioned. Generally, however, the survey indicated optimism for the UK as a post-Brexit top financial centre.
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*Stock percentages taken on 13.09.2021 at 10:36
*Jones, Huw & Hardcastle, Elaine (13. September 2021). Reuters: Banks expect London to remain a top financial centre, says survey. Last viewed on 13.09.2021 on https://www.reuters.com/world/uk/banks-expect-london-remain-top-financial-centre-says-survey-2021-09-12/.
