"The current model of using London as a gateway to Europe is likely to end," Deutsche Bundesbank executive board member Andreas Dombret said in Frankfurt, as quoted by the BBC.
Britain is EU key financial hub, with a third of all wholesale banking operations between governments and large businesses taking place there, according to the broadcaster. It also accounts for almost 80 percent of EU foreign exchange transitions.
"I am very sceptical about whether equivalence decisions offer a sound footing … Equivalence is miles away from single market access," Dombret predicted at a Boston Consulting Group meeting of businesses and bankers.
Last month, British Prime Minister Theresa May signaled her government’s intent to opt for the so-called hard Brexit, which includes exiting the EU single market in order to pursue closer economic ties with nations outside the EU and new deals with EU member states. She said London preferred a free trade agreement with the bloc.