Director of finance online – why london won’t lose its crown as europe’s financial capital top ten savings account interest rates
Following the Brexit vote, the race to succeed London as Europe’s financial capital is on. Best term deposit interest rates australia “We know that groups based in the City are planning to leave for Dublin, Amsterdam, Frankfurt and Paris,” the French prime minister, Manuel Valls, told journalists soon after the UK’s referendum. Best long term deposit interest rates australia Other countries in the European Union are also intent on stealing financial services jobs from the UK. Pnb saving account interest rate 2015 Even the economy minister of Bulgaria, the EU’s poorest country, invited City of London escapees. Best fixed rate savings accounts monthly interest In reality, however, London will remain Europe’s main financial centre.
Protecting the interests of creditors and shareholders from the rapacious behaviour of competitors
or the state is obviously important for attracting financial services. Best regular savings interest rates uk On this score, the UK is ahead of the rest of Europe. Best deposit interest rates uk The World Bank’s Doing Business project ranks the UK fourth in the world in shareholder protection, behind only Hong Kong, New Zealand and Singapore.
France is in 29th place when it comes to the strength of laws protecting shareholders, Germany is 49th. Best isa savings interest rates uk In terms of protecting creditor rights, the UK ranks 19th in the world, France 79th, and Germany 28th. Best savings interest rates for pensioners Of course, the rule of law can improve in Europe so that financial investors feel equally well protected in Paris or Frankfurt. Best savings rates 2015 martin lewis But this process will take years, perhaps decades.
In terms of education, markets increasingly require a sophisticated understanding of economics and finance, as well as in-depth knowledge of the legal architecture underlying financial services. Compare savings rates australia Here, too, British universities lead Europe in offering quality education. Tax free savings account interest rate comparison 2015 In the latest Shanghai global ranking on economics education, there are six UK universities among the top 50 and only three continental European universities (one in the Netherlands and two in France). Best business savings interest rates uk Four of the top five masters of finance programs in Europe are based in London (the only exception being INSEAD near Paris).
And in terms of tax and employment regulation, the financial services sector in the UK benefits from lower corporate tax rates and more flexible employment laws than Germany and France. Best bank deposit interest rates uk In the World Bank’s Doing Business ranking on paying taxes, the UK is ranked 15th in the world, well ahead of Germany (ranked 72nd) and France (ranked 87th). Bank deposit interest rates uk The UK’s lead is even wider in terms of flexible labour regulation. Best savings rates uk over 50 The latter is especially important in the highly cyclical financial sector that annually hires and fires tens of thousands of white-collar professionals.
The finance industry has many fields within it, however, and some parts are viewed as more vulnerable to Brexit. Saving account interest rates in indian banks One candidate is foreign exchange trading in the euro – a US$2 trillion-a-day market. Best savings rates fixed rate bonds 1 year Currently, more than 70% of euro trading takes place in London, compared with 11% in Paris and 7% in Frankfurt, according to Bank for International Settlements data. Best deposit rates ireland fixed term The European Central Bank has already tried banning clearing houses outside the eurozone from trading the euro. Best instant access savings interest rates 2015 But in 2015, the EU’s highest court disagreed. Best savings account interest rates in massachusetts Hence London’s vulnerability may be overplayed: Brexit does not alter the status quo as the UK has never been a member of the eurozone.
Insurance is another sector that’s European activity is highly concentrated in London and where Brexit may hurt. Best savings account interest rates in texas But the UK’s main competitors are in Asia (Singapore and Tokyo) and the US. Best cash isa savings rates 2015 The access that London has to European money is based on proximity and historic relationships, not on being part of the EU. Best fixed rate cash isa savings rates In short, even in insurance markets it is hard to see a rapid shift away from the City of London.
But Brexit may have a negative effect on London’s position as the world’s best-regulated financial centre. Best interest rates savings 1 year fixed Following the uncertainty around its EU exit, Asian and American markets could take some business away from the City of London. Best fixed deposit rates australia The government’s knee-jerk reaction to this development may be to erode some of the UK’s financial regulation in an effort to attract more investment. Best fixed deposit rates in indian banks Such a response would be unfortunate as London has attracted a lot of talent because it is a place for clean business practice. Best fixed deposit rates in singapore 2015 This possibility notwithstanding, London is unlikely to lose its crown as a global financial centre.