Date: 18th October 2018
Media: The Guardian
What happened?
Due to the negotiations about Brexit in United Kingdom, other European countries are using the deep uncertainty about the future financial regulation of the continent’s financial markets to include business and activities.
Whom and where it affects?
This issue affects the rest of the business and countries in the European Union
What sort of public or private institutions are involved?
It involves all institutions, mainly financial and bank sector, the Brexit pretends a financial rethinking about a major financial centre is, of course, unambiguously good for Porsche dealerships, upmarket champagne bars and table dancing clubs.
Why is it important for Banking and Finance?
Is very important because the relationship between the rest of Europe banks and United Kingdom banks. This banks had lost the capitalization also the interest rates are at historic minimums, apart of the financial crisis because of the brexit, the GDP also suffers a contraction. There was a drop in housing prices, specifically 33%. In addition to all, United Kingdom has a void on the part of the rest of countries of the European Union, costing them thus to obtain financing outside of UK.
What do you think will be the consequences in the foreseeable future?
The United Kingdom will participate in a real-world experiment that tests the economy. It will produce the substantial relocation of financial activity unless it realice a major advance in the Brexit negotiations. If it happen , the BIS economists won’t make a mistake.