Former BoE official expects euro clearing to leave London post-Brexit

A woman holds a 20 and 50 Euro bank notes in front of an ATM in this illustration picture taken in Bern January 16, 2015. REUTERS/Thomas Hodel

LONDON (Reuters) - Britain’s dominance in euro-denominated clearing of financial contracts will end after the country’s withdrawal from the European Union, former Bank of England Governor Charlie Bean said on Wednesday.

Britain is the main centre in the EU for clearing derivatives and other financial contracts denominated in euros.

French President Francois Hollande has said this should move to the euro zone in future after Brexit, but banks have privately expressed scepticism that this can be done.

“I think it’s certain that we will lose it,” Bean told a House of Lords committee.

He said he had “absolutely no doubt at all” that euro denominated clearing will be mandated to be taken back to the euro zone.

Reporting by Huw Jones, Editing by Kylie MacLellan