Appearing before the UK Parliament Treasury Select Committee late last month, Bank of England (BoE) Governor Andrew Bailey warned that the current push for deregulation could bring about another financial crisis, as reported by The Guardian.
While acknowledging that parts of the regulatory framework — particularly legacy EU rules — could benefit from review, Bailey stressed that "we can't compromise on basic financial stability." He defended the post-Financial Crisis ringfencing regime as a vital tool for resolving failing banks and said the BoE would consider reforms "at the margins" but not wholesale changes. "It has established itself as part of the system and to me it would not be sensible to take it away at this point," Bailey said.
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