London can be a winner as a neutral financial hub, says Standard Chartered chair
José Viñals says geopolitical uncertainty can benefit the City
Banking Editor

Hong Kong is Standard Chartered’s single biggest market, and its focus on the Chinese economy more broadly leaves it exposed to tensions between Washington and Beijing
The City of London could emerge as a winner from the rapidly evolving geopolitical landscape if it becomes a “neutral” financial hub, according to the chairman of the emerging markets banking giant Standard Chartered.
José Viñals, a veteran economist and financial regulator, said that “globalisation is changing course” and warned that “the global order is in transition towards a less rules-based and more power-based system”.
However, he argued that London could potentially benefit from the rising uncertainty.
It comes as fears have grown in both the Square Mile and Westminster in recent years that London’s status as one of the world’s top financial centres is waning, with business being lost to New York and rival hubs such as Amsterdam snapping at the City’s heels.
Viñals, 70, who has chaired the FTSE 100 lender since late 2016 and is stepping down in May, said that London “is facing significant competition internationally” but added: “I think that geopolitics is shifting now in a way that may also be in favour of London. It may be perceived more as a neutral financial centre.”
Donald Trump has upended global affairs since returning to the White House in January. He has started trade wars with countries including Canada and China, and sought to strike a deal with Russia to stop the war in Ukraine, which put considerable strain on the transatlantic relationship between the US and Europe. “We have been in a rules-based world, a very predictable world more or less since the Second World War, and now what we’re seeing is that the world is in transition,” said Viñals, who was previously a deputy governor of the Central Bank of Spain and a senior figure at the International Monetary Fund. “The main certainty we have nowadays is that uncertainty’s here to stay.”
While based in London, Standard Chartered’s operations are overseas in the fast-growing markets of Asia, Africa and the Middle East. Hong Kong is its single biggest market and its focus on the Chinese economy more broadly potentially leaves it exposed if tensions between Washington and Beijing escalate further.
However, Viñals argued that Standard Chartered, which can trace its roots to the opening of Chartered Bank of India, Australia and China in 1853, has navigated international uncertainty throughout its history “so we’re very good at dealing with that”.
He said that the Standard Chartered board regularly reviewed the bank’s UK domicile but always came to the same conclusion: “We are happy with being in London.” While some companies have recently dropped London as their primary stock market listing in favour of other exchanges overseas in attempts to clinch better valuations, Viñals said that Standard Chartered had not entertained the idea.
Two years ago Standard Chartered’s faltering share price led First Abu Dhabi Bank, the biggest lender in the United Arab Emirates, to consider a takeover of the FTSE 100 group, although an approach did not materialise.
Viñals said: “I can tell you that I never spoke to them at all on this matter.”
Since then a turnaround pushed through by Bill Winters, the chief executive of Standard Chartered, has borne fruit and shares in the British bank have rallied strongly, meaning the threat of an unwanted bid has receded.
“All in all I think the bank is less vulnerable to this as a result of our proven capacity to unlock value ourselves,” Viñals said.