Finance: Expert discusses impact of inflation on a savings account
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A common opinion amongst Remainers was that the UK’s banking sector would face a mass shortage in staff with Brexit incentivising highly paid earners to move elsewhere. Indeed, financial lobby group Europlace predicted in 2016 that Brexit would create 10,000 new finance jobs in Paris by 2025. To date fewer than half of those jobs have materialised.
Equally William Wright of the think tank New Financial claimed up to 35,000 London financial jobs could eventually disappear.
However the European Banking Authority (EBA) published a report about high earning bankers with its figures based on 2019 data.
The report from the EU’s banking watchdog showed that of the 4963 European bankers on salaries over €1million (£858,000) 71 percent of them still live in the UK.
Political website Guido Fawkes commented:”These highly paid workers in the financial sector pay hundreds of millions in taxes and spend their millions on goods and services that provide thousands more jobs.
Figures suggest that London still remains by far Europe’s biggest financial centre (Image: Getty)
As many as 380,000 people are employed in Britain’s banking industry according to TheCityUK figures (Image: Getty)
“This is the last time the UK will appear in these reports, so maybe Germany will take the crown next time.”
The numbers contravene the school of thought which suggested Brexit would lead to an exodus of top earners across the finance and commercial sectors, with Frankfurt the supposed beneficiary.
The EBA report stated that less than 100 highly paid bankers left Britain ahead of its departure from the EU.
In 2019, Britain had a drop of just 95 high earners in 2019.
Of the 4963 European bankers on salaries over €1 million (£858,000) 71% of them still live in the UK (Image: Getty)
These figures suggest that London still remains by far Europe’s biggest financial centre.
Indeed, a total of 380,000 people are employed in Britain’s banking industry according to TheCityUK figures.
However some EU bankers believe coronavirus has only slowed down relocation and are insistent the the financial sector in London will wither away.
Morgan Stanley’s France chief executive Emmanuel Goldstein explained that French bankers were returning home having spent their entire career overseas.
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EU bankers believe coronavirus has only slowed down relocation (Image: Getty)
He said: “There is Brexit but not only that, there is a post-Covid phenomenon too.”
In May the European Central Bank’s bank supervisor Andrea Enria said their objective was not “to put people in chains and move them to Frankfurt.”
He however insisted that banks needed to ensure that people in charge of interactions with European clients were inside the bloc.
He said: “There are banks that have done the ‘full monty’ and are already there, and there are banks that have done much less.”
The report was released as the UK were hoping to strike a deal over Britain’s financial sector’s role in Europe.
Despite a “memorandum of understanding” agreed in March, no “equivalence” deal for the sector has yet been signed.