Brexit Very Likely to Affect Global Banking

The Brexit has been one of the most contentious issues that has recently plagued the European continent. The exit of Great Britain from the European Union, which was a long time existing partnership has been a functional union for the several decades. The cohesion of the European Union as a single functional unit came to an end last month, after the United Kingdom overwhelmingly voted out of the European Union in a national referendum. Global banking scenarios were also drastically affected after the exit of Great Britain from the union.

Brexit

Many countries and leaders advocated against the exit of Britain from the union, in most part due to the ill effects it would cause not just on the British economy, but also on the global scale and economy. Brexit has ascertained that the various global investments made into the European Union would now be void and would not include the benefits of having the United Kingdom in the fray. Many political experts claim that even though the move to leave the European Union was drastic, it seemed as if the main mandate that was contested in the Brexit referendum was that of immigration in the United Kingdom.

The recent flux of immigrants in the United Kingdom has left a drastic sense of alienation amongst the British people towards their land. This feeling of not belonging to their own land was cited as a primary reason for the referendum to go in the way that it did. With the exit of Britain from the European Union, European stock prices plummeted by 20 – 25 percent. Various organizations and institutions within the European Union were affected after UK’s exit. Additionally, various firms within the United Kingdom also faced a compounded problem of negative global business growth.

The unfortunate referendum

As the United Kingdom seems to be shutting its borders to the world, it also seems to be dealing with a lot of fallout from the referendum. London has, for long, been one of the major global financial hubs. This seems to be waning, as London may soon lose its claim to being a major financial player. Many global banking businesses seem to be pulling out of the United Kingdom as they claim that the uncertainty in the banking sector may result in bad business for many ventures across the UK. The business and banking sector seems to be bleak for the United Kingdom. However, there are still many organizations that choose to remain within the UK despite the Brexit.

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