Banks analyse Brexit risks
The ECB is engaging with the lenders individually and is encouraging firms to be prepared for all the potential impact from the vote, say sources.
Bank of England governor Mark Carney has warned Britain’s exit from the EU would hurt the City of London and worsen risks to financial stability.
European lenders including Deutsche Bank and ING have said they may move staff away from Britain in the event the country votes to leave the 28-nation EU in the June 23 referendum.
Banco Santander’s UK unit has “assessed the potential consequences for our business of the UK leaving the EU as well as the potential impact of market instability in the lead-up to the referendum and in any implementation period following a potential ‘leave’ vote,” it said in its annual report.
ING chief executive Ralph Hamers said last month that the Dutch lender would probably cut London staffing levels if the UK withdrew.
ING, the Netherlands’ largest lender, has about 650 employees there.
A Brexit would deprive the EU of one of its best-rated members, leaving the bloc and its investment bank vulnerable to credit rating downgrade, analysts warned yesterday.
While ratings agencies have warned a vote to leave could hurt the UK’s rating, a Brexit could also have consequences for institutions which Britain supports via its EU membership.
Britain accounts for some 16% of the EU’s nominal GDP, makes a net annual budget contribution of about €6.5bn and is among the highest-rated of the EU’s 28 members.
