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EU banking feeling affects of Brexit as German says it will be ‘no easy task’ to recover

A GERMAN finance boss has revealed European banks are already feeling the negative affects of Brexit and admitted “it will be no easy task” to recover from London’s departure.

Felix Hufeld Getty

Bafin president, Felix Hufeld said that he is “missing” London being a main hub of supervision


Bafin president Felix Hufeld said he is “missing” London being the main point of call for European Union financial supervision.

He told Bloomberg: “We already miss the UK today. It’s quite a different dynamic on particular events whether or not the UK is part of the team. That’s the reason I said I’m missing you guys already.”

 Mr Hufeld, the head of Germany’s financial regulator, said that Brexit has caused a massive shake-up in banking and caused a problem with European integration.

The UK has been home to clearing – an industry that has been extremely lucrative for London for decades – as it handles trillions in euro-denominated derivatives wagers.

The Bafin boss added that Europe must now look towards the future and build a foundation post Brexit which “will certainly be no easy task”.

Mr Hufeld, who has experience on the supervisory boards of the European Central Bank and three European supervisory Agencies said that nothing compares to London’s finance ability.

He said: “One thing should be clear, it is totally out of the question that such a vast amount of euro-denominated clearing is happening in a third-country clearing venue without any supervisory access on behalf of the EU.”

Mr HufeldPA

Mr Hufeld is the head of Germany’s financial regulator


A number of global banks and insurers are preparing to relocate business and staff from London to the continent in order to secure their EU operations, with many looking to the likes of Frankfurt and Dublin as their new continental home.

He warns that City firms are nearing the “point of no return”, as he urged banks wanting to leave London to speed up their applications ahead of a possible “cliff-edge” Brexit.

Bafin and several other firms are currently preparing for a hard Brexit – the worst case scenario following Britain’s EU divorce – given the lack of progress from the last five rounds of Brexit talks.

Mr Hufeld said: “Negotiators have not made sufficient progress on the designated key separation issues.

Philip Hammond Getty

Philip Hammond has made it clear that it is his priority that London remains on top


“For the time being, we therefore have to assume that the UK will not be a member of the common market or anything close to it following Brexit.

“There are only 18 months to go before that happens, possibly leading to a so-called cliff-edge situation,” the regulator’s president said.

A Treasury spokeswoman added: “The Chancellor has made it clear that it is his priority to ensure the UK remains the financial services centre of the world and it is neither in the UK nor EU’s interests for there to be a cliff-edge for business or a threat to financial stability.

“We are working closely with our partners in Europe to negotiate a mutually beneficial transitional arrangement which avoids unnecessary disruption, and allows businesses in the UK and EU to adjust in an orderly way to the new arrangements after Britain leaves the EU.”

https://www.express.co.uk/finance/city/870978/Bafin-president-Felix-Hufeld-missing-London-clearing-finance-banks-Brexit

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