The head of Germany’s central bank Jens Weidmann warned that London’s position as a financial centre would be dealt a severe blow if the UK left the single market because banks would be denied the right to operate across the 27 remaining members of the EU, The Guаrdian reported.

The “hard Brexit” option would mean banks would automatically be stripped of their ability to conduct business across the EU and open the door for Frankfurt to take business away from London, he said.

The passporting rights of the EU are closely connected with the common European market and London will lose them automatically as soon as the country stops being a part of the European Economic Area” (EEA).

According to the head of the German Central Bank, some businessmen will reconsider the location of their headquarters. As a significant financial centre and the seat of important regulatory and supervisory bodies, Frankfurt is attractive and will welcome newcomers.