The Future of Global Financial Centres after Brexit: an EU Perspective

Silvia Calo' and Valerie Herzberg
Additional contact information
Valerie Herzberg: Central Bank of Ireland

No 9/FS/19, Financial Stability Notes from Central Bank of Ireland

Abstract: This note presents a set of possible directions for the future of London and other financial centres in Europe after Brexit. It does so by building scenarios framed by the current landscape of financial services in the EU. We find that given the sizeable gap between London and other financial centres in Europe and London’s international orientation London is likely to remain a very large global financial centre even in more adverse scenarios. According to our analysis, the impact of fundamental factors on London could be very small due to the 'premium' it enjoys, not captured by size or productivity. Yet, the premium could be eroded and it may be sensitive to 1) a possible realignment of perceptions, and 2) abrupt changes in regulation and centrality due to new trading arrangements, disruption in global value chains, and institutional reshaping and associated uncertainty.

Date: 2019-08
New Economics Papers: this item is included in nep-int and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://centralbank.ie/docs/default-source/publica ... rzberg).pdf?sfvrsn=6 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cbi:fsnote:9/fs/19

Access Statistics for this paper

More papers in Financial Stability Notes from Central Bank of Ireland Contact information at EDIRC.
Bibliographic data for series maintained by Fiona Farrelly ().