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London: British banks and insurance companies have transferred more than a trillion pounds to European Union territory in reaction to the UK’s exit from the bloc, according to a study published Friday.
More than 440 companies operating in the banking and finance sectors in the United Kingdom moved their departments and employees, or created new entities in the European Union in reaction to Brexit, according to a study prepared by the “New Financial” research center.
One trillion pounds equals 1.4 trillion dollars and 1.2 trillion euros.
In the study published about four months after Brexit, the Research Center warned that the report, which is “considered the most comprehensive by far, about the repercussions of Brexit” on London’s business district, does not explain the actual size of these repercussions.
The center said Brexit is still in its infancy.
British-based banks have transferred more than 900 billion pounds of their assets to the territory of the European Union, or 10 percent of the total assets of banks in the United Kingdom, according to the study.
As for insurance companies, they transferred more than a hundred billion pounds.
Britain’s exit from the European Union came to put an end to what was termed the financial pass that allowed British companies to operate in Europe.
Last month, London and Brussels signed a memorandum of understanding on financial services, but it has not yet addressed the issue of parity, that is, allowing UK-based companies to operate in the conglomerate’s territory.
Britain completed its exit from the European Union on December 31, after reaching an agreement in the last quarter of an hour that did not include the financial services sector.
On Friday, the center considered that “the completion of Brexit is only the last stage of the beginning of the process: given the limited parity arrangements in place, with time we expect to witness a leakage of companies and their activities from the United Kingdom to the European Union.”
The center continued, “Given that the European Union adopts a more strict approach to places (practice) activities and (work) individuals, we expect this number to increase (one trillion pounds) in the future.”
After Brexit, Amsterdam overtook the British capital in trading European stocks.