United Kingdom’s financial services industry is shrinking awaiting Bexit.
Financial institutions in the UK like banks and other financial companies have already shifted more than $1 Trillion (or about £800 billion) out of the country. This sum was shifted into the EU.
Companies have taken this step because of uncertainties on Brexit, reported by EU officials.
They have set up new offices elsewhere in the European Union to safeguard their regional operations after Brexit. Other firms are moving assets to protect clients against market volatility and sudden changes in regulation.
“Our numbers only reflect the moves that have been announced publicly,” said Omar Ali, head of financial services at EY. “We know that behind the scenes firms are continuing to plan for a ‘no deal’ scenario.”
Britain is expected to leave the European Union on March this year. However, British Prime Minister Theresa May still needs to win support in the UK parliament for the divorce deal.
The Bank of England said the result from Brexit would be worse than the 2008 financial crisis.
“Financial services firms have no choice but to continue preparing on the basis of a ‘no deal’ scenario,” Mr. Ali said.