大西洋理事会-英国银行业和金融业的未来（英）-2022.4-40页_1mb

Summary of THE FUTURE OF UK BANKING AND FINANCE

Core Content

This report, authored by Panagiotis Asimakopoulos, Christopher Breen, and William Wright, outlines a comprehensive blueprint for the future of the UK banking and finance industry. It emphasizes the need for domestic and international reform to ensure the UK remains a competitive and influential financial center in a post-Brexit world.

Main Themes

1. The UK's Current Position

• The UK banking and finance industry is one of the most successful in the country, contributing significantly to the economy.
• It employs over 1.1 million people, representing 3% of the total UK workforce, and accounts for 7% of UK gross value added.
• The sector generates £76 billion in tax annually, which is over 10% of all tax receipts.
• It is a major source of exports, contributing over £80 billion annually and a £60 billion trade surplus.
• Financial services represent a third of all inward foreign direct investment in the UK.

2. Capital Markets and Economic Impact

• The UK has deep and efficient capital markets, the largest outside the US.
• These markets provide over £170 billion in annual funding to UK companies.
• The UK has around £6 trillion in long-term capital pools, including pensions, insurance, and retail investment.
• The UK's capital markets are twice as deep as the EU's but only half as deep as the US's, indicating a mid-Atlantic position.
• Over 95% of the largest UK companies use capital markets to finance investment and manage risk.

3. Brexit and the Need for Reform

• Brexit has disrupted the UK's financial services sector, leading to the relocation of some operations to the EU.
• The UK has lost ground in public equity markets and IPOs, with its share of global IPOs dropping from 13% to less than 4% over 20 years.
• The UK is an outlier in financial services taxation, with the highest total tax rate in the world.
• The UK needs to rethink its regulatory framework to align with international standards and improve competitiveness.

4. Growth Potential

• The report suggests the UK could achieve up to 40% growth in capital markets.
• If the UK closes half the gap with the US, it could see an additional $75 billion in annual capital raising and nearly 2,000 more companies listing.
• There is potential for a $2.5 trillion increase in long-term capital pools.

5. Reform Priorities

• Develop a clear strategy: With metrics, milestones, and cross-departmental cooperation.
• Dynamic and outcomes-based framework: The UK should adopt a more agile and data-driven regulatory approach.
• Support domestic and international competitiveness: Prudential and market policies should not hinder the industry's ability to support the UK economy or put UK firms at a disadvantage.
• Taxation reform: The UK should review its tax policies to incentivize investment and participation.
• Digital leadership: Emphasize a "digital first" approach, leveraging fintech expertise and regulatory sandboxes to lead in digital innovation.

Key Recommendations

• Reboot domestic capital markets: Improve efficiency and adapt to the UK's leveling up agenda and net-zero goals.
• Simplify and streamline regulations: Reduce unnecessary complexity and cost while maintaining financial stability.
• Enhance international cooperation: The UK should take a leading role in global financial standards, particularly in areas like sustainable finance, fintech, and capital requirements.
• Strengthen transatlantic ties: Leverage the UK's alignment with US approaches to open markets and outcomes-based regulation.
• Improve access to talent: Implement a simpler and faster visa system to attract global financial professionals.

Conclusion

The report concludes that the UK has a once-in-a-generation opportunity to reform its financial sector and maintain its global leadership. This requires bold, coordinated action on taxation, regulation, and international alignment. The UK's financial sector can continue to be a key player in the global economy if the reform agenda is enacted promptly and effectively.

Key Figures and Data

• UK capital markets are twice as deep relative to GDP as the EU, but half as deep as the US.
• The UK accounts for 50% of global interest-rate derivatives trading and 48% of all FX trading.
• Over 45% of UK financial activity is international, compared to 15% in the US.
• The UK has lost over 40% of its listed companies in the past 20 years.
• The UK's total effective tax rate on banks is higher than in Frankfurt or New York, and is expected to grow.

Appendices and Sources

• The report references multiple studies and data from sources such as the Office of National Statistics (ONS), Dealogic, and PwC.
• It highlights the importance of reviewing the EU's regulatory framework and adapting it to the UK's unique needs and role in the global financial system.

This summary provides a clear overview of the report's main arguments and recommendations, highlighting the UK's strengths and challenges in the evolving financial landscape.