Foreign banks ‘poised to leave over Brexit’

Bank bosses have their hands “poised quivering over the relocate button” and are bracing themselves for the “worst case scenario” as Britain embarks on its exit from the European Union, according to a key industry body.

Anthony Browne, chief executive of the British Bankers’ Association (BBA), said international banks were so gripped by uncertainty that they were planning for aBrexit where Britain exits the European single market and falls back on World Trade Organisation (WTO) rules.

He said such a move wouldleave thebankingindustry standing at a “cliff edge” without the legal certainty and passports needed for trading across the EU.

Speaking at theBBAconference, Mr Browne said: “With so much uncertainty about the next couple of years, international banks are all planning for the worst case scenario – that we end up on WTO rules.

“They have set up project teams to work out what operations they need to move by when, and how best to do it.

“Itcantake years tomove a business. So they cannot wait until the end of Article 50 negotiations in 2019, but have to start taking action much sooner.

“Their hands are poised quivering over the relocate button, with the first movements expected in thecoming months. There is no room for complacency.”

According toTheCityUK, a so-called “hard Brexit” – where Britain leaves the single market in order to take a tighter grip on immigration – could cost the City of London 75,000 jobs.

Mr Browne said leaving the single market would also create legal problems for heavyweight financial institutions and ramp up market uncertainty.

“We face a ‘cliff edge’ wheresuddenly the £20billion a year cross-channel trade in financial services would be thrown into legal uncertainty,” he added.

“There is a big risk to disruption to markets.”

Carl Rogberg