The Telegraph has today commented on two reports published by economic outlook firm, EY ITEM Club, and international law firm, Herbert Smith Freehills, which suggest that despite the uncertainty in the aftermath of the Brexit referendum result the City of London will cope well in the aftermath.
The EY report states that despite expectations that growth for personal and business lending will slow in the two years following the Prime Minister’s triggering of Article 50 on March 29, this will recover in 2019 with lending to businesses set to reach £430 billion by 2020. With total assets in the banking sector being expected to reach £7.3 billion and assets under management expected to climb to £1.2 trillion by 2020.
The Herbert Smith Freehills report interviewed executives at 70 publicly listed corporations during February and March of this year. It found that nearly 90% of executives do not think their company’s financial plans will change as a result of Brexit and that the banks they use to raise capital have not indicated that treasury products are to change as a result of Brexit. Responding to concerns European banks have around the issue of passporting – the rights of firms to sell financial products to jurisdictions across the European Economic Area – one executive said “no banks have turned down business with us – this is probably because of faith that the situation will get sorted out”.