BANKING: London’s lifeblood draining away.. to Asia

LessThunk comment: It has been said before, “Globalisation is a good thing”, but along with providing market freedom and the associated increased trading volume, comes a few key responsibilities.. for both the landlord (in this case, the UK) and for the tenants (the banks themselves). In March, we saw Standard Chartered shareholders suggesting relocating to Asia, now HSBC are pondering the same.

If the UK isn’t offering the best deal to the banks, then they legally owe it to their shareholders to go elsewhere. When they leave, the UK government loses jobs and corporate taxes, basically forever.

Globalisation, means banks (and other large concerns) have a choice about where to settle; and if a bunch of new customers are emerging on the other side of the world, they need only be nudged slightly to make moving look attractive.



Categorised as: banking | china | economy

Posted by: Phaedrus

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