I think it is important to note, and too often overlooked, that the vast majority of community banks managed their risks well in the years leading up to and during the financial crisis and were not the source of the excessive risk taking that caused the crisis.
As a result, Brexit could, at least in theory, reduce the range of financial intermediation services available in the EU, weaken institutions’ productivity, and reduce market depth. In a nutshell, it could entail higher costs. And there is not the slightest guarantee that business will move to the continent after Brexit.