The head of Germany’s central bank, Jens Weidmann, has warned of the risks to London as a financial centre after Britain’s vote to leave the European Union.<br /><br /> Weidmann told Britain’s Guardian newspaper that financial institutions based in the UK will lose so-called passporting rights which allow them to operate across the EU. <br /><br /> “Passporting rights are tied to the single market and would automatically cease to apply if Great Britain is no longer at least part of the European Economic Area,” Weidmann said.<br /><br /> The ECB policymaker said that could force companies to relocate to other financial centres such as Frankfurt, but added he did not “expect a mass exodus from London”.<br /><br /> He also said there was a conflict of interests for the European Central Bank because it both sets monetary policy and supervises banks. <br /><br /> “As a banking supervisor, it could find it difficult to be tough with a bank or even wind it down if it knows that, because of its monetary policy measures, it is its biggest creditor,” Weidmann said.<br /><br /> Weidmann warns on ECB’s ‘twin’ roles and UK banks https://t.co/sCe4HS2OAW— Financial Times (@FinancialTimes) September 19, 2016<br /><br /> #ECB must tighten screws as soon as justified says #Bundesbank chief Jens Weidmann – ecb #finance https://t.co/l4D7rTxJc9— Luxemburger Wort EN (Wort_EN) September 19, 2016<br />
