FXStreet (Mumbai) – If Britain leaves the European Union, the country’s economy and financial sector may absorb a severe blow, forcing global banks to look elsewhere for their European bases, according to the ratings agency Standard & Poor’s.
The rating agency’s credit analyst Frank Gill noted, “We believe it could significantly dent the UK’s current net trade surplus in insurance and financial services of more than 3% of GDP,”
“However, the extent of this impact will crucially depend on what alternative free trade arrangements the UK government could agree with its European partners in the event of an exit,”
“Post-Brexit, the center of gravity in European financial markets could well move further toward Frankfurt, Paris, Dublin, or beyond.”
(Market News Provided by FXstreet)