Frontpage News 2016 The Danish Bankers...

The Danish Bankers Association comments on Brexit

29 June 2016

The votes have been tallied and the results are in. The Brits’ pilgrimage to the ballot box has resulted in a decision to withdraw from the EU. According to the Danish Bankers Association, this is a huge loss for Europe.
- There is absolutely no doubt that the United Kingdom’s positive approach to free trade and market economy will be missed in the EU. This is a huge loss, not only for the United Kingdom, but also for Denmark and the EU, states the CEO of the Danish Bankers Association, Ulrik Nødgaard.
Increased uncertainty

The United Kingdom’s withdrawal from the EU brings with it increased political and financial uncertainty. 
- London is a very important financial centre in the EU. Brexit creates huge uncertainties both politically and financially and that will affect the British and European economies, amongst other things through lower investments in companies. This is not a desirable development, Ulrik Nødgaard states.
- At the same time, I am worried that countries outside of the Eurozone will be listened to much less in the future, which can have consequences for Denmark, Ulrik Nødgaard says.
Due to Brexit, Denmark can perhaps act as a safe haven for investors.
- If the uncertainty becomes too large, investors will, without doubt, seek a safe haven. This would mean that demand for the Danish kroner and Danish bonds would increase. In the end, this could benefit Danes in the form of cheaper mortgages, Ulrik Nødgaard says.
The future
Now, it is up to the remaining member states to find out how the future European cooperation should be organised. The announcement from the United Kingdom has led to the resignation of Commissioner Hill, who will no longer be at the head of the European Commission’s work with financial regulation.
We are disappointed that in 2017, Lord Hill will no longer head up financial regulation in Europe. He is familiar with the problems for the Danish mortgage and banking system and we have had a continually good dialogue with him, Ulrik Nødgaard says and concludes:
- We are facing huge challenges with the impending regulations from the Basel Committee on Banking Supervision, which requires a strong focus.
For further information please contact the Head of Media Relations at the Danish Bankers Association, Stine Luise Hansen, on tel.: +45 3016 1009
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