HSBC has declined to counter reports from the BBC that it would move 1,000 staff from London to Paris if the UK left the single market as part of its new relationship with the EU.
The jobs would likely go from the Canary Wharf HQ and involve people who process payments in euros.
The bank only recently declared its willingness to remain headquartered in east London although all previous certainties are up in the air following the vote to leave the EU.
Since the vote, the market has seen turbulence and the Chancellor on Monday (June 27) issued a statement aimed at calming nerves before trading began.
Although uncertainty remains the enemy of stability, longer term, the banks are concerned about the loss of “passporting”, which allows banks to operate without restriction in all European Economic Area countries, which comprises the EU and a small number of other countries.
Experts suggest that the UK would have to sign up to freedom of movement to retain the passport to trade in Europe.
John Cryan, chief executive of Deutsche Bank, told German business newspaper Handelsblatt: “The financial centre won’t die, but it will get weaker.” Deutsche Bank employs 11,000 in the UK including in Canary Wharf.
Policy chairman of the City of London Corporation Mark Boleat said: “There will be no mass exit of banks and financial institutions from the Square Mile.
“While there will be uncertainty as Brexit negotiations go on we are still the financial centre of the fifth-largest economy in the world.
“The general view of the City is that the Government should push for the UK to retain our access to the Single Market.
“Any other option will fail to provide proper arrangements for financial services and risks damaging this vital industry.”
In other developments:
- British businesses have warned that Brexit will trigger investment cuts, hiring freezes and redundancies as the consequences of leaving the EU threaten to destabilise markets further this week, according to The Guardian .
- The outgoing EU commissioner Lord Hill told the FT that the City of London should brace itself for an new era where its rule book reflects Franco-German interests.
- Chancellor George Osborne has indicated that he would "play an active part in negotiations with Europe" but warned the British people "it might not be plain sailing" although the economy was robust and the Bank of England had "well thought through contingency plans".
- Leave campaign leader and prospective Prime Minister Boris Johnson has used his newspaper column in the Daily Telegraph to paint an optimistic picture of a decoupling of Britain and the EU amid "intensifying European co-operation".
- Labour leader Jeremy Corbyn says in will stand again in any new leadership election following the resignation of 12 members of his shadow cabinet over the weekend. Three more shadow ministers resigned on Monday and he faces a non-binding motion of no confidence from his Parliamentary colleagues.