While the UK’s withdrawal from EU is highly regrettable, its exit could be associated with the substantial loss of rights to conduct business in the European Union. Most people agree that London’s major role as financial capital cannot be replaced within a short timeframe. However, some argue that the uncertainty surrounding Brexit will lead to a substantial shift of banking services out of London.
The days of policy and regulatory barriers that have resulted in fragmented financial markets in the region are numbered. Good regulation is therefore vital for the region, as markets need sound and stable rules in order to develop.