Sunday, July 10, 2016
Brexit: Will London Be Replaced As A Global Financial Center?
I don´t think so. There are no alternatives which could replace London.
Take for instance, Frankfurt, the seat of the European Central Bank and Germany`s financial center. The town is way too small & too provincial. The place has just a population of about 700,000 and lacks the infrastructure needed to attract (London has more than 8 million).
Paris is certainly comparable with London by by size & glamour. But the city is the capital of a country, which is very bureaucratic, over-regulated & xenophobe (ask the French what they think about the English, the Americans and the Germans, look how the government treads foreign big companies). France´s governments are usually anti-corporation and anti-foreign banks.
New York won`t replace London either. The global finance business will still need an alternative to Wall Street & New York and doesn´t want to be too influenced by the US policy & Washington DC. Banks still need the competition between New York, London and the far east places (Tokyo, Singopore, Shanghai, Hong Kong).
I believe that London will even get more attractive as a financial center when the UK - and her capital - aren`t anymore controlled by Brussels. I think London will become more liberal and less regulated. The British government already announced tax cuts for corporations
Even the management of HSBC, a bank which was founded in Hong Kong with most of the business in overseas, declared to want to stay in London ( ft.com).
London will continue to prosper, maybe even better than before.