The U.K.'s departure from the EU will leave a gap in banking expertise in future regulatory negotiations, European banking regulators said at the U.K. Finance International Banking Conference.
"The U.K. regulators always brought the point of view of the buy-side, of global investors," Andrea Enria, executive director at the European Banking Authority, said during a panel discussion. "That's very important — European regulators are sometimes less attentive to the perspective of global investors."
He added: "We will have to build this expertise, and maintain very strong co-operation with the U.K. authorities, whatever the outcome of negotiations."
Verena Ross, director general of the European Securities and Markets Authority, also said the specialist knowledge of U.K. regulators would be missed after Brexit.
"Particularly in the area of capital markets, we in ESMA have benefited hugely from the expertise of the U.K. Financial Conduct Authority," she said. "Certain areas of the capital markets are just not that prominent in other parts of Europe compared with the U.K. If you look at the commodity markets, for example, a lot of the expertise lies here in the U.K. In terms of technical knowledge and input, there will be a huge gap left by not having the U.K. around the table. The cooperation will need to be there."
Meanwhile, German central bank board member Andreas Dombret said he felt Germany was losing "an ally" in Europe-wide discussions on financial regulations. "From a German perspective, we will miss the U.K. very much," he said. "Our positions are often very similar. Very rarely have we had different opinions."
This includes negotiations on Basel III, an accord on capital requirements for banks, he added.
The Basel Committee will reveal the new rules in Frankfurt on Dec. 7.
