A British vote to leave the European Union would have a ripple effect across the banking industry in Europe, impacting major banks the most, a financial watchdog group is warning. Germany’s largest banks would be hit the hardest, given their heavy exposure to London, the head of the German financial watchdog group Bafin said in an interview with the German newspaper Tagesspiegel.
Bafin President Felix Hufeld told the newspaper in an article to be published on Monday that he hoped Britons would vote to remain in the European Union. If not, “the biggest banks would have the biggest problems,” the newspaper quoted Hufeld as saying. “They have the most activities in, and with, London,” he said.
Deutsche Bank and Commerzbank are the German banks that do the most business in Britain. Brexit is up for a vote on June 23, with voters deciding the country’s membership in the EU, a choice with far-reaching consequences for politics, the economy, defense and diplomacy in Britain and elsewhere.