UK banks could lose passporting rights in EU: Weidmann

UK banks could lose passporting rights in EU: WeidmannBritish banks would lose their right to operate in the 27-nation EU unless post-Brexit Britain is at least part of the European Economic Area, Jens Weidmann has said.

The president of the German Bundesbank and a member of the European Central Bank (ECB) Governing Council in an interview for Guardian newspaper said London-based financial institutions could lose its passporting rigths.

"Passporting rights are tied to the single market and would automatically cease to apply if Great Britain is no longer at least part of the European Economic Area," Weidmann said.

Passporting rights are considered to be one of several important factors underlying the strength of the City of London financial district and there have been many warnings that losing them would represent a severe blow for the industry.

Weidmann also told about the possibility for some London-based businesses to reconsider the location of their headquarters after Brexit, but it won’t be a mass movement, he said.

"As a significant financial center and the seat of important regulatory and supervisory bodies, Frankfurt is attractive and will welcome newcomers. But I don't expect a mass exodus from London to Frankfurt," he said.
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