European Banking Authority post-Brexit
The post-Brexit relocation from London of the EU's prudential regulator for its banking sector, the European Banking Authority (EBA), will signal the future stance of the EU towards financial integration. The choice of where to place the authority will give the first hint of whether EU banking will remain an open single market, coalesce around the euro and strengthen supranational cooperation or fall into internal squabbling.
- The main loser from this decision is London, which will see the first explicit institutional relocation resulting from Brexit.
- The EBA’s relocation is not likely to affect the Brexit negotiations, despite some tabloid press rhetoric.
- Losing the EBA will make it harder for British financiers and regulators to understand future EU regulations.