The UK is reportedly set to take a tough but less bureaucratic approach for banks once Brexit is completed.
A report from Reuters claims the Bank of England Deputy Governor Sam Woods has said this will begin with simple regulations for small banks.
The country is set to issue new regulation for the City of London and many hope for a “Brexit dividend” that will help banks and insurers maintain global competitiveness, its said.
In an online event with City Week, Woods said, “We should approach that in the spirit of, let’s have high standards here in London and here in the UK, but let’s get back to a more British way of doing that regulation — things that can be tough but less bureaucratic.”
Other regulations have also been brought into question, including Basel III, which aims to mitigate risk within international banking. The deputy governor suggested it would be in “that format” and will offer simpler rules for small lenders in the coming months.
One of the reasons for this increased flexibility is due not having to be concerned with other countries. He said, ““It would have been impossible to agree in the European context as one person’s big bank is another person’s small bank.”
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