Bank of England Open to Discussion on Regulatory Changes

LONDON (Reuters) – The Bank of England (BoE) is considering discussions with the UK government to boost economic growth by reducing regulatory requirements for the financial services sector, as noted by Deputy Governor Sam Woods on Monday.

Amid expectations that incoming U.S. President Donald Trump will ease regulations for banks, financial regulators in other regions face pressure to adopt similar relaxations.

In a letter to Prime Minister Keir Starmer, Woods highlighted five areas under consideration that could support the government’s pro-growth agenda. These include:
1. Simplifying post-Brexit regulations for small banks.
2. Encouraging insurers to invest in British assets.

Woods expressed a desire to collaboratively explore additional changes with HM Treasury and the Department of Business and Trade to simplify and rationalize the UK regulatory environment, and promote UK growth further.

Proposed changes might involve creating a “concierge service” for foreign investors and revising the BoE’s regulatory principles, including those regarding climate change, while minimizing overlaps in governance and disclosure requirements.

However, Woods clarified that these ideas were still in early discussions and emphasized the importance of avoiding a “race to the bottom” in financial regulation, especially in light of U.S. reforms aimed at strengthening the global banking system.