Andrew Bailey warns against watering down City regulations in pursuit of growth Bank of England governor says there is ‘no trade-off’ between economic growth and financial stability.
Reeves told City bankers attending her Mansion House speech last year that protections put in place after the financial crash had “gone too far”, amid a broader deregulation drive in an attempt to drive up economic growth.
The governor of the Bank of England has warned against watering down City regulations introduced after the 2008 banking crash, saying there was “no trade-off” between economic growth and financial stability.
In a thinly veiled response to chancellor Rachel Reeves’s push to loosen the constraints brought in over the past 17 years, Andrew Bailey said that it was important not to forget the damage to the economy caused by the implosion of the global financial system.
The chancellor also ordered the Financial Conduct Authority (FCA), the City watchdog, to encourage more “sensible risk-taking” by banks, asset managers and insurers, as part of a broader push for growth.
