LONDON, Jan 18 (Reuters) – London’s status as a world financial centre is at risk due to a combination of rising regulation and global economic shifts, according to senior executives polled by Britain’s biggest business lobby.
London has emerged from the 2008 banking crisis but it faces fresh threats from a transfer of economic power to Asia, as well as potential unilateral regulatory action aimed at prevening a repeat of the financial meltdown, the Confederation of British Industry quoted company executives as saying in a report.
“London will lose market share, though it won’t diminish in importance,” Stephen Green, chief executive of HSBC, Europe’s biggest bank, told the CBI. “This is not because of the financial crisis, but because of shifts in the global economy.”
Other executives singled out a potential regulatory crackdown in the wake of the banking crisis as the most serious threat to the British capital’s financial services sector.
“What is potentially damaging to London is if the regulatory burden becomes too burdensome,” the report quoted Michael Spencer, chief executive of interdealer broker Icap, as saying.