It is still doubtful that a British exit from the EU will be cause for concern. forever seals his future London and his city’s financial center. However, the fact is that London benefited the most when, as a financial center, it was also a gateway to the EU. The agreement that the UK has concluded with the EU. after Brexit at the end of 2020 does not include the financial services sector. This means that city companies can no longer offer their services in EU markets. on equal terms and on the basis of the same rules. Many bank executives are wondering if Brexit will lead to the decline of the city. However, businesses, people, assets and securities are already leaving British capital.

According to an Ernst & Young analysis published in March last year, 24 financial sector companies have already announced their intention to join the EU. £1.3 trillion, the equivalent of £1.46 trillion. Euro. At the same time, 2/5 of the largest British financial companies are planning to transfer part of their activities and part of their staff to the EU countries. And at the same time, the European Banking Authority (EBA) believes that the number of bank managers in the EU with fees of more than one million euros has skyrocketed and is approaching 2000. In particular, they amount to 1957 people, while in 2020 there were only 1383 managers . As highlighted in a related report by the Financial Times, in the first year after Brexit, the UK remained the world’s leading exporter of financial services.

2/5 of the largest financial companies in the UK are planning to transfer part of their operations and employees to the EU countries.

Even today, it continues to perform significantly better than other financial metropolitan areas on various indicators of financial sector competitiveness, according to The City UK, a lobbying firm. However, as the company’s chief executive Miles Selits told the FT, London’s rivals, other major financial centers, have become much larger, as the share of British capital in markets such as cross-border bank lending, insurance contracts and assets managed by hedge funds, while in competing financial centers such as New York and Hong Kong increased. This indicates a decline in the capitalization of the London market at a time when the capitalization of other major markets is growing. In 2000, London’s market capitalization was 100% of the UK’s GDP, while today it is only 69%. Over the same period, it increased from 100% in the US, Canada, France and Australia to 158%, 164%, 121% and 133% of their GDP respectively.

Speaking to the FT, Chris Hayward, chairman of the City of London Union, said London was “at a crossroads”. Faced with increasing global competition, Europe’s once-dominant financial center needs long-term direction, a government agenda, regulators and an industry ready to act “to sustainably maintain its status as a global financial powerhouse.” And his reform, planned by British Prime Minister Rishi Sunak, focuses on the need for London-based financial firms to regain the ability to take more risk to grow further.