In the post-Brexit maelstrom, private banks with London-based operations have already started scouting for a new home, with Paris, Dublin and Frankfurt among the top contenders to dethrone London as Europe’s financial hotspot.
Indeed, the City’s status as a banking hub was only enhanced by its EU membership, which has provided institutions with ‘passporting’ rights into the 28-member bloc. But with this privilege on the line, banks are weighing up the benefits of staying put in a country that could find itself sitting outside of continent’s single market.
Investment banks will be first to feel the pinch when the divorce becomes official. HSBC has already said it could move as many as 1,000 trading jobs to Paris. US banks with sizeable UK-based operations – including J.P. Morgan, Morgan Stanley, Citibank and Goldman Sachs – are making similar noises.
Private banks, too, will be impacted but perhaps to a lesser extent. Many are in the process of drawing up contingency plans if and when Brexit removes their right to sell financial products and services from Britain to EU-based clients.
Asian Private Banker, in its ongoing Brexit fallout poll, has asked its industry readers what private banking centre will benefit most if London falls out of favour.
Paris, Frankfurt, Dubai, Singapore, Dublin and Hong Kong have emerged as the top choices
Below, we provide a breakdown of these financial centres and rank them based on their desirability as a destination for displaced private bankers.[table “” not found /]
Sources: Numbeo, OCED, APB research, Expatisan
So, which city would you pick?
Going by the above indicators, if you are a private banker that is looking to build up a meaty book, dine frequently at Michelin-starred restaurants, spend less on living overall, and breathe decent-quality air (sorry Hong Kong), Paris – never mind the schooling – comes out on top! Disagree? Let us know why at email@example.com.
Quality of life index: is an estimation of overall quality of life by using an empirical formula which takes into account purchasing power index, pollution index, house price to income ratio, cost of living index, safety index, health care index, traffic commute time index and climate index
Cost of living index: is a relative indicator of consumer goods price, including groceries, restaurants, transportation and utilities to New York. The cost of living index doesn’t include accommodation expenses such as rent or mortgage.
Property price to income ratio: is the basic measure for apartment purchase affordability (lower is better). It is the ratio of median apartment prices to median familial disposable income, expressed as years of income. The ratio assumes that the average apartment has 90 square metres.
Pollution index: is an estimation of the overall pollution in the city. The biggest weight is given to air pollution, than to water pollution/accessibility, two main pollution factors. The lowest weight is given to other pollution types.
Global school ranking by country: by a report titled “Universal Basic Skills: what countries stand to gain” by the Organisation for Economic Co-operation and Development (OECD).