The City of London after Brexit: Sticky power in the Global Financial Network

Abstract

We examine the impact of Brexit on London as an international financial centre through the lens of the global financial network (GFN) framework, using quantitative data on selected key financial flows and stocks, as well as qualitative data from interviews and other sources. Our results show very limited impacts on London, and possible gains in New York and the USA rather than in the European Union. The results are compatible with the logic and history of sticky power in the global financial network. Despite some relocations from London, Brexit has not (yet) undermined London’s attractiveness to financial and business services, and the global connectivity they afford to London as an international financial centre. London remains the global conductor of offshore jurisdictions, a role which may be enhanced with more flexible regulation after Brexit. Any forecasts about the future impacts of Brexit on London need to consider the sticky power of the global financial network, and close relationships among its building blocks.