|Charles Evans 25|
I have no special knowledge of such things, but I assume that UK based companies that would be hit by this are already contingency planning a move to Paris, Frankfurt, or Amsterdam, if whatever deal is hashed out does not include financial passporting. What worries me is that if the uncertainty stretches on too long, they may get to the point in the planning where it is worth executing anyway.
I wouldn't be surprised if some of them move; however, for reasons of costs involved, and/or key staff not being able to relocate, I imagine that not all corporate lenders will relocate, which as far as I can see would result in a reduction of corporate lending available inside the EU.So: is there sufficient slack in the corporate lending sector of the EU (minus the UK) for them to be able to cope with the loss of lenders?
(And indeed, something which had not occurred to me in my previous post: are EU organizations/businesses allowed to borrow outside the EU - in which case it's possibly a moot point whether London is in or out? Given Irontooth's post (which I was originally responding to), I get a sense that there must be some sort of controls or regulations which make it difficult/expensive (or outright illegal) for EU organizations/businesses to borrow (edit: on a 'corporate lending' scale) outside the EU...)