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German ECB policymaker Weidmann warns on London's financial hub role post-Brexit

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By Euronews
German ECB policymaker Weidmann warns on London's financial hub role post-Brexit

<p>The head of Germany’s central bank, Jens Weidmann, has warned of the risks to London as a financial centre after Britain’s vote to leave the European Union.</p> <p>Weidmann told <a href="https://www.theguardian.com/world/2016/sep/18/hard-brexit-will-cost-city-of-london-its-hub-status-warns-bundesbank-boss">Britain’s Guardian newspaper</a> that financial institutions based in the UK will lose so-called passporting rights which allow them to operate across the EU. </p> <p>“Passporting rights are tied to the single market and would automatically cease to apply if Great Britain is no longer at least part of the European Economic Area,” Weidmann said.</p> <p>The <span class="caps">ECB</span> policymaker said that could force companies to relocate to other financial centres such as Frankfurt, but added he did not “expect a mass exodus from London”.</p> <p>He also said there was a <a href="http://uk.reuters.com/article/us-ecb-policy-weidmann-idUKKCN11O0U7">conflict of interests for the European Central Bank</a> because it both sets monetary policy and supervises banks. </p> <p>“As a banking supervisor, it could find it difficult to be tough with a bank or even wind it down if it knows that, because of its monetary policy measures, it is its biggest creditor,” Weidmann said.</p> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Weidmann warns on ECB’s ‘twin’ roles and UK banks <a href="https://t.co/sCe4HS2OAW">https://t.co/sCe4HS2OAW</a></p>— Financial Times (@FinancialTimes) <a href="https://twitter.com/FinancialTimes/status/777757649349795840">September 19, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script> <blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/ECB?src=hash">#ECB</a> must tighten screws as soon as justified says <a href="https://twitter.com/hashtag/Bundesbank?src=hash">#Bundesbank</a> chief Jens Weidmann – <a href="https://twitter.com/ecb"><code>ecb</a> <a href="https://twitter.com/hashtag/finance?src=hash">#finance</a> <a href="https://t.co/l4D7rTxJc9">https://t.co/l4D7rTxJc9</a></p>&mdash; Luxemburger Wort EN (</code>Wort_EN) <a href="https://twitter.com/Wort_EN/status/777805884055486464">September 19, 2016</a></blockquote> <script async src="//platform.twitter.com/widgets.js" charset="utf-8"></script>