it is already a banking center in the European context, plus a clearinghouse. Also, Frankfurt has the Euro
pean central bank, which is now the regulator for all banks in Europe. So, the banks want to be closer to the major regulator,” Donoghue said.
As for asset management, insurance, and funds companies, Donoghue said, they are relocat
ing to Dublin because the city has a very broad and diversified set of capabilities in running funds and managing assets.
Andrew Pilgrim, associate partner at consultancy Ernst & Young, which is known as EY, sai
d it is probably not in the EU’s best interests to have financial services concentrated in one location.
“From policy and political perspectives, there is an argument to say that actually having a balanced financial sector across many EU jurisdi
ctions means that you have less risk concentrated in one jurisdiction,” Pilgrim said. “And it also means that you get a more balanced regu
latory and supervisory environment across all the EU member states, as opposed to all of that being focused on one.”