Significant Decrease in Banks Relocation due to Brexit

UK BanksSome financial analysts and market gurus had predicted that banks and other financial institutions would be relocating to other parts of the world rather than London due to Brexit. All these speculations have now debunked as there has been a significant drop in commercial jobs from thousands to hundreds as Brexit implication has become a lot clearer now.

According to a report submitted by TheCityUK, approximately 75,000 jobs are likely to be transferred from the UK if UK-EU financial services deal is made. This estimate was speculated last year during the Brexit talks.

As of now, the total number of jobs has dropped to 10,500 based on the research by the EY Accountants. The job reduction has come into force after EU Commission President Jeane-Claude Juncker and British Prime Minister Theresa May have announced developments in the Brexit border deal.

With Brexit 2019 round the corner, a large number of banking institutions are coming to terms with their setup and calculating the number of operations they need outside the country. A report from Financial Times says that big banking firms are looking forward to relocating only 4,600 jobs outside London to cities like Dublin and Frankfurt which constitutes 6% of the city staff members.

BBC Newsnight

Deutsche Bank which has earlier announced to relocate 4000 jobs outside the country is now looking forward to transferring just 350 posts by the end of April next year. Similarly, the chief executive Jamie Dimon of JP Morgan had earlier decided to shift 4,000 positions out of London but is now settling for just 700 jobs outside the country.

Recently, Goldman Sachs has opened a new office at Frankfurt in Germany, and only 500 staff members would be relocated from London to the new office. Earlier, this bank had predicted to move 1000 jobs outside of UK. Another bank HSBC has also announced that it would relocate around 1,000 jobs outside London but nothing final has been decided in this regard. It is likely that the figure may come down further.

Few banks have become conservative in their approach toward shifting employees from their original location because they are of the opinion that EU operations would take considerable time to build up. Some banks are also of the opinion that UK breakup impact would be felt for a long time.

Rob Rooney who is the Chief Executive of Morgan Stanley made the following statement:

The story has always been three to five years out, not what it does to the City the morning after Brexit. If people judge it by the numbers that move [immediately] afterwards, they will miss the point.

Top10FX.net Editor

Top10FX.net Editor

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