UK Banks Reaching Out to Government to Avoid Hard Brexit

Large banks with a presence in the U.K. feel the country’s government is not fully receptive to the financial services sector in the wake of the uncertainty surrounding the Brexit vote, an industry source with knowledge of the situation, has told CNBC.

The source, who wished to remain anonymous due to the sensitive nature of the topic, said a wide range of banks, both big and small, felt that while the U.K. Treasury is very receptive to their ideas about a “smooth Brexit”, other government departments are less sympathetic.

The source further added that a number of banks are planning to move their operations out of London due to the uncertainty surrounding Brexit.

“Banks with large numbers of customer accounts in Europe and banks financing infrastructure projects, bonds and derivatives in Europe are among those looking to move out of London,” the source added.

This comes after the British Banking Authority (BBA) chief, Anthony Browne, wrote an article in the U.K.’s Observernewspaper Sunday saying big banks were preparing to relocate out of the U.K. early next year.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza