Bank of England proposes ‘more British style’ financial regulation

Bank of England proposes ‘more British style’ financial regulation

General view of the Bank of England in London, UK, Oct. 22, 2021. REUTERS/Tom Nicholson/File Photo

Register now for FREE unlimited access to Reuters.com

LONDON, Sept. 8 (Reuters) – The Bank of England said on Thursday it would move to a “more British style of regulation” for the country’s vast financial services industry as it seeks to profit from Brexit.

The BoE’s Prudential Regulation Authority (PRA), which oversees the stability of banks and other financial institutions, released a discussion paper outlining its policy proposals now that Britain had left the European Union.

“The move to a more British style of regulation, with technical rules set by regulators rather than enacted by law, will enable us to deliver strong prudential standards in a way that is proportionate, supportive of competitiveness and aligned with the UK market,” BoE Deputy Governor Sam Woods said.

Register now for FREE unlimited access to Reuters.com

The proposals come as Britain’s new Prime Minister, Liz Truss, has pledged to “really unleash” the City of London by making the most of Brexit for the £164bn ($188bn) financial sector. .

Newly appointed Finance Minister Kwasi Kwarteng met on Wednesday with financial leaders including the bosses of global banks HSBC (HSBA.L) and Barclays (BARC.L) at the Treasury to outline the government’s economic approach. read more

Kwarteng told executives he wanted a “Big Bang 2.0” for the industry aimed at a regulatory overhaul to boost growth and competitiveness, according to two sources aware of the discussions.

The chief executives of Lloyds and NatWest (NWG.L), as well as regional heads of Wall Street giants Goldman Sachs (GS.N) and JP Morgan (JPM.N) were also in attendance, some virtually. Kwarteng has a meeting with JP Morgan CEO Jamie Dimon today. read more

Former Finance Minister Rishi Sunak also promised a “Big Bang 2.0” for the industry – a reference to the deregulation of stock trading in the 1980s that boosted London’s growth.

City lords have said that largely failed to materialize, with London catching up on rival global financial centers since Brexit. read more

Truss’s new ministerial team has said it plans to investigate the BoE more closely – with more regular meetings and a promised review of the PRA’s regulatory role, along with other financial watchdogs – raising concerns about threats to its independence. . read more

Kwarteng expressed his full support for the independence of the Bank of England at Wednesday’s meeting.

The BoE said Thursday that the PRA would continue to be driven by the pursuit of strong standards and be proactive in its approach to its secondary competitive and growth target.

The central bank said it asked for comments on its future policy-making approach before December 8.

($1 = 0.8704 pounds)

Register now for FREE unlimited access to Reuters.com

Back1 of 2

Leave a Comment

Your email address will not be published.