The changing shape of international banking and the future of Europe

January 2018

“In many ways, Brexit was the last thing banking needed.”


Banks have been on a long journey of recovery since the financial crisis: raising capital, restructuring, transforming their systems, and refining their strategies. Part of that journey includes questions about international operations. Today, increasing political volatility—particularly the disruption from Brexit—another round of new regulations, and persistent questions about technological transformation of banking are the top-of-mind issues confronting banks operating in Europe. In a recent discussion, a director stated, “International models are again being reconsidered.” 

On November 28, 2017, BGLN participants met in London to discuss the issues facing banks operating globally, the implications of Brexit for financial services in the United Kingdom and European Union (EU), and the broader trends impacting banking. Over dinner, BGLN participants were joined by participants from the Insurance Governance Leadership Network (IGLN) for a discussion with Lord Jonathan Hill, the former European commissioner for financial stability, financial services, and capital markets union. This ViewPoints covers highlights from the discussion on November 28 as well as in calls with network participants in preparation for, and immediately following, that meeting. It is organized in the following sections:

  • Regulation and policy remain in flux, with more fragmentation possible

  • Global banking models are being challenged

  • Banks are planning for post-Brexit Europe