Brexit: New York might become the new financial center of the world

Economy Nilgun Salim
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New York will benefit the most from Brexit, while the most powerful banks in the world will be forced to relocate their headquarters in the Big Apple, writes Bloomberg.

The U.S. state is the most favored city regarding the relocation of the world’s financial center, among Frankfurt and Paris. According to the financial publication, the investors labeled the city as the best alternative.

Until they will consider this major strategy, Continental Europe will win some of London’s banking operations until their financial institutions will adapt to the regulatory standards.

Most likely, the most influential banks will move their headquarters across the Atlantic.

‘In Europe, there is no place the same infrastructure or regulations to replace the role of London, especially regarding the capital markets’, said the president of Lloyd’s John Nelson.

‘There is one city in the world that can do that and that is New York’, added the CEO.

Regarding the investment banks, globally speaking, London is the largest or second economic center. If the number of benefits will reduce by changing the role of London in Europe, the banks could diminish their operations in London and relocate some of their employees abroad.

In September the Global Financial Centre published a top, in which London resulted as the main financial center in the world.

The index was based on two criteria: the statistic data and a survey among employees.

The British capital achieved a score of 795 points, maintaining its leading position, while New York occupied the second position. The U.S. state was followed by Singapore and Hong Kong.