London set to remain Europe's financial capital, say foreign bankers - despite Euro opt-out

Citation

(1998), "London set to remain Europe's financial capital, say foreign bankers - despite Euro opt-out", European Business Review, Vol. 98 No. 5. https://doi.org/10.1108/ebr.1998.05498eab.004

London set to remain Europe's financial capital, say foreign bankers - despite Euro opt-out

London set to remain Europe's financial capital, say foreign bankers ­ despite Euro opt-out

London remains by far the most important European financial centre, despite the UK's decision not to be in the initial wave of countries participating in the single European currency, according to a report published today. The report, from London Chamber of Commerce, is based on a survey of 100 foreign banks based in the City of London.

Key findings of the report

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  London excels in those areas which are most critical to a foreign bank's location decision ­ namely its telecommunications infrastructure, depth of financial markets, availability of a skilled workforce and political stability.

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  Whether or not the UK is involved in monetary union ranks only 20th out of 23 location factors in terms of its importance ­ underlining London's truly global position.

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  However 42 per cent of respondents said that the UK's permanent non-participation in the single currency would eventually detract from London's competitiveness.

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  Despite job losses, London has in fact been a net beneficiary of globalisation with more banks expected to recruit staff than shed them over the next two years.

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  Areas where potential threats to London's position exist include office rental levels, labour costs, over-regulation, poor road and rail links and underinvestment in local transport.

Commenting on the findings, Sir Brian Jenkins, President of London Chamber of Commerce, banker and former Lord Mayor of London said: "This study demonstrates the faith that foreign banks place in London as an international financial centre. A record 585 foreign banks are now in the City ­ with nearly 200 opening in the last two years. They clearly share our view that London will be the trading centre for the Euro."

Judith Mayhew, Chairman of the Corporation of London's Policy & Resources Committee, added:

The City's long history of probity and the depth of its financial markets are paying huge dividends.

International bankers are perhaps the most sensitive group of all in terms of their need to operate in a competitive environment. This report shows the extent to which London remains pre-eminent and is the key location where firms wishing to conduct international business need to be.

For further information, please contact Vincent Burke, LCCI Press Officer on 0171 203 1897 (work); 0181 509 0168 (home); 0498 923193 (mobile) or LCCI Director of Policy and PR, Andrew Hawkins on 0171 203 1898 (work) or 0958 225614 (mobile).