UK eases banking rules in largest shake-up for 30 years, using ‘Brexit freedoms’, Treasury chief says
- The government is using ‘Brexit freedoms’ to make Britain more open, dynamic and competitive, Treasury chief Jeremy Hunt says
- Last year, Amsterdam overtook London as Europe’s biggest share-trading hub, but London remains biggest financial services centre overall
Britain is easing banking rules brought in after the 2008 global financial crisis in a bid to attract investment and secure London’s status as Europe’s leading finance centre.
Treasury chief Jeremy Hunt said on Friday that the changes, which follow Britain’s departure from the European Union in 2020, will make the UK “one of the most open, dynamic and competitive financial services hubs in the world”.
The package of more than 30 changes includes lifting a cap on bankers’ bonuses and easing capital requirements for smaller lenders. The government also said it will review regulations that hold bankers accountable for their decisions and will relax “ring-fencing” rules intended to separate risky investment banking from retail operations.
Hunt said the government was using “Brexit freedoms” to make Britain more competitive. But many economists point out that the UK’s departure from the EU has erected barriers to trade and led some firms to shift offices and jobs to other European cities.
Last year, Amsterdam overtook London as Europe’s largest share-trading hub, though London remains the biggest financial services centre overall.