Banking services could migrate to less-regulated parts of the financial system unless the provision of similar services with similar risks is regulated in a similar way. We’ve been here before: decisions taken 20 years ago to leave OTC derivatives largely unchecked created lasting economic damage. And not all financial innovations may provide lasting social benefit.
Regardless of the precise outcome, the intrinsic discontinuity represented by any form of Brexit means that it is certain the 2020 edition of the European Financial Forum will be discussing a fundamentallydifferent European financial system compared to the system that has been in place for the last several decades.