Major Banks to Leave UK Early Next Year Following Brexit

Leading banks are planning to relocate from the United Kingdom following Brexit, local media reported citing the source.

MOSCOW (Sputnik) — According to Anthony Browne, the chief executive of the British Bankers’ Association, major banks consider leaving the United Kingdom in the first quarter of 2017, while small banks plan to start relocations before Christmas, the Observer said.

"For banks, Brexit does not simply mean additional tariffs being imposed on trade – as is likely to be the case with other sectors. It is about whether banks have the legal right to provide services," Browne said as quoted by the Observer.

Browne noted that businesses could not wait to the last minute, since it could take much time to move the operations and "banks might hope for the best but have to plan for the worst".

A hard Brexit would deprive the country of the access to the EU internal market and the customs union, which could potentially result in tariff and non-tariff restrictions.

On June 23, the United Kingdom voted on referendum to leave the European Union. On October 2, UK Prime Minister Theresa May said that the country would trigger Article 50 of the EU Lisbon Treaty by the end of March 2017 to start the official procedures to cease its EU membership.

According to Article 50, a country wishing to leave the European Union must formally inform the European Council about its decision, and then two-year exit negotiations would start.