For example, the pound is open to exchange rate risk, as it could devalue again strongly should there be a vote to leave the EU. Effects can also be expected on the stock markets. In particular, British bank shares could come under pressure if the markets expect a Brexit to push up banks’ wholesale funding costs to the detriment of their profitability.
Seeing as the financial sector accounts for a much greater share of the UK economy, at 6.7%, than it does in the rest of Europe, 2 UK bank shares will be at the epicentre of market jitters.