Bank of England could face showdown with Truss over EU rulebook easing


The EU is planning to ease its own Basel rulebook and diverge in certain areas, meaning UK bank could be forced to implement tougher standards, TBC UK has claimed.

TBC highlighted that banking lobby group UK Finance has expressed concerns about the design of the latest Basel package.

The move comes as tensions between the BofE and the Government continue to deepen, with Liz Truss and Chancellor Kwasi Kwarteng attempting to unleash a new financial services big bang to make the City more internationally competitive.

At a meeting with City bosses in August, industry leaders urged Truss to make promoting global competitiveness a ‘primary objective’ of the FCA and PRA.

The decision would go further than the Financial Services and Markets Bill currently going through Parliament, which puts forward making promoting competitiveness a secondary objective of regulators.

Truss recently revealed she was considering a potential merger of the PRA, PSR and the FCA in a move to put growth and competitiveness at the heart of post-Brexit regulation.

TBC remarked that the increased focus on axing red tape and boosting competitiveness is likely to further increase tensions between the Government and City regulators.

Truss has said she plans to help the City of London maintain its competitive edge and ‘supercharge growth and investment’.

In an interview with City AM, Truss said the City was the ‘jewel in the crown of the UK economy’ but had for too long seen its potential held back by ‘onerous EU regulation’.

Copyright © 2022 RegTech Analyst

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst


The following investor(s) were tagged in this article.