The UK's financial sector could see 30,000 job losses amid the Brexit, according to a report published by Bruegel, a Brussels-based economic think tank.
The report said the UK's decision to leave the European Union could lead to the EU's clients shifting business worth €1.8tn (£1.6tn) to the continent. This, in turn, could lead to several jobs being axed in the country. Of the total, an estimated 10,000 would be across banking roles and about 20,000 in roles such as accountancy, law and consulting.
While Paris, Amsterdam and Dublin as some of the benefactors, the report noted that the German city of Frankfurt would gain the most, Bruegel added.
The think-tank, however, said that apart from lost work opportunities, there were other risks from Brexit that Europe might face in the future. Lack of strong oversight of banks coupled with geographically diverse financial institutions could increase the risk of a banking meltdown amid an acute financial crisis.
Bruegel, however, said that these risks could be mitigated if the EU takes a common approach to investment banks instead of having 27 different national systems.
"Brexit involves risks for market integrity and stability, because the EU including the UK has been crucially dependent on the Bank of England and the UK Financial Conduct Authority for oversight of its wholesale markets...Without the UK, the EU27 must swiftly upgrade its capacity to ensure market integrity and financial stability," it was quoted as saying by the Guardian.
Nicolas Véron, a co-author of the Bruegel report further explained that the EU should have "a more centralised consistent architecture", instead of "27 clones of the FCA and Bank of England".
He further noted that while there were both opportunities and risks that could arise from Brexit, the 27 nations that would continue to be part of the bloc have barely started discussing the financial regulations, to be put in place post the UK's exit.