IF Britain votes out of Europe, Germany's biggest banks would suffer a huge hit that would shake the eurozone's financial system to its core, a top policymaker in Frankfurt has admitted.
German firms such as Deutsche Bank AG and Commerzbank AG have a large exposure to London and would be faced with big problems in a Brexit, revealed Felix Hufeld in an interview with German newspaper Tagesspiegel.
Mr Hufeld said the banks were now assessing the consequences of leaving and how their business dealings would be affected.
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The president of Bafin said the European Central Bank (ECB) is also planning to closely monitor the situation.
It came as Swiss financiers described the Brexit effect as a 'tsunami.'
Chief economist, Alan McQuaid at Merrion Capital Group Ltd spoke of Brexit as a "game-changer" on Swiss banks.Swiss National Bank President Jordan warned back in April that a so-called Brexit would cause “enormous stress” in Europe.
Support for the Leave campaign has surged in the final days ahead of the June 23 referendum, with out now taking a 19 point lead.
In a separate interview with German paper Bild, Donald Tusk, president of the European Council, unleashed comments designed to scare Britain into voting remain.