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The Differential Impact of Brexit on Banking: UK vs. Europe
Author(s) -
VázquezOrdás Camilo J.,
GarcíaOlalla Myriam
Publication year - 2020
Publication title -
global policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.602
H-Index - 33
eISSN - 1758-5899
pISSN - 1758-5880
DOI - 10.1111/1758-5899.12879
Subject(s) - brexit , differential (mechanical device) , sample (material) , business , event study , european union , stock (firearms) , stock exchange , international economics , financial system , economics , international trade , finance , geography , chemistry , context (archaeology) , archaeology , chromatography , engineering , aerospace engineering
The objective of this study is to analyse the differential impact that the main events in the implementation of Brexit have had on the European banking sector, and attempt to identify whether said impact has been different for UK and European banks. To do this, we selected a sample of UK banks listed on the stock exchange and a control group composed of banks belonging to European countries of a similar size to the UK banks. We used event study methodology to determine the impact, which was measured by the market reaction. The obtained results allow us to state that UK banks reacted differently from European banks in response to the same events that have defined the path of Brexit, and generally more negatively.