Moody's highlight the simple fact about whether banks will be able to access the EU
While ECB's Weidmann is trotting out the political guff about Brexit, perhaps he should be made aware of what it actually entails, when it comes to the banks.
There are rules in place in which a country that has financial regulations that match or are better than the EU regulations, can almost have automatic access to EU financial markets.
Moody's have highlighted that very point by saying that;
Global banks based in the UK will keep some access to the EU after an exit
EU financial services laws recognise that some non-EU countries rules and oversight (of specific business lines) are as tough as its own
The UK leaving the single market would increase costs for the banks but would likely be manageable
Third-country equivalence provisions contained within the upcoming MiFID II EU directive may provide firms with alternative means of accessing the single market
No one is naïve enough to think it would all be business as usual under that scenario but the real outcome is not the complete 'door slam in the face' situation many are suggesting.
