Prior to the 2008 Recession, the banks were one of the most respected institutions in Britain. If the EU Referendum had been held in 2006, as opposed to 2016, the majority of electors would have taken their warnings that leaving the trading bloc would trigger a downturn much more seriously. But as a result of the worst recession since the Second World War, of which the banks were one of the main protagonists, their reputation for financial prudence evaporated.
Nowadays, many taxpayers, understandably, view them as a liability. The Royal Bank of Scotland, nearly a decade following its bailout, remains government-owned, with no hope of it being returned to the private sector any time soon.
Northern Rock was sold at a hurried pace by former chancellor George Osborne and the Government has only just dissolved its ownership of the Lloyds Banking Group. Despite people's dependence on them, they are still mistrusted.
The banks are rescuing the UK economy
Throughout last year, voters became tired of their constant warnings that they will be financially worse off if they chose Brexit. JP Morgan and numerous experts became notorious for their alarmist threats of another recession should Britain leave the EU. Yet these are the same people who failed to anticipate the 2008 Recession. Thankfully, the majority of electors ignored their arguments and 52 per cent of them opted to quit the trading bloc.
Even though the banks feared Brexit, it is strangely ironic that this event they did not want has actually restored some of their credibility. Brexiteers are happy to share articles on social media of financial bosses demonstrating their support for Britain's prospects after it leaves the EU. Most people are happy to read news of bankers staying in the UK in the future.
It is this positive information which boosts Britain's global reputation since June 23rd. It turns out the banks are rescuing the UK economy, as controversial as that may sound these days.
Earlier this year, Lord Norman Blackwell, chairman of the Lloyds Banking Group who supported leaving the EU last year, said London will thrive post-Brexit.
Lloyds has no intention of quitting the UK after March 2019, when Britain is due to cancel its EU membership. And now the HSBC Group Finance Director, Iain Mackay, said his company intends to continue with its British operations. With the UK economy still largely dependent on the banking sector, to lose it would cause another crash. We should be thankful they are staying.
The banks are becoming Britain's saviours
Margaret Thatcher purposefully stripped back banking regulations during the Big Boom of 1986 for circumstances like Brexit. By doing so, she made the City resilient to any situation. That is why so many businesses want to stay in London after Britain leaves the trading bloc.
Nearly a decade following the 2008 Recession, the banks are becoming Britain's saviours following almost ten years of vilification.
