Banks likely to relocate jobs away from London if 'Brexit' succeeds, says EU’s Hill

Corporate banks are likely to be forced to relocate jobs away from London, if Thursday’s European Union referendum ends in favor of 'Brexit', said Jonathan Hill, the EU's financial services commissioner on Wednesday. Banks will be forced to shift from London to Paris or Frankfurt, should Britian opt out of the EU.

"I've visited London, Manchester and other British financial centres in the past weeks and warned of the consequences of an exit from the EU," Hill said, while speaking to German business newspaper Handelsblatt, warning that a Brexit would have a severe impact on the UK's financial and banking sector.

Moreover, earlier this month, investment bank JP Morgan said that the consequences of a Brexit can extend up to reducing around 4,000 jobs within the British economy. Hill's and JP Morgan's fears echoed a warning issued by rating agency Standard & Poor's, which suggested Britain's role as Europe's financial centre could be in danger in the event of a Brexit.

"A vote to leave would result in complex, prolonged negotiations with the EU over the terms of the UK's exit, with considerable uncertainty over the outcome," S&P said in a statement.

Meanwhile, international banks could refocus their European businesses away from Britain, which allows credit institutions from EU countries to carry out their business in another member state without having to obtain an official authorization from the relevant regulator.