Overview

• Governor Andrew Bailey told the Treasury select committee that dismantling ring-fencing risks repeating the mistakes of the 2008 financial crisis.
• He argued there is no inherent trade-off between financial stability and economic growth based on past experience.
• Bailey described ring-fencing as a beneficial safeguard for consumers and households that does not fundamentally impede bank business models.
• He declined to describe regulation as a “boot on the neck” of businesses, rejecting the analogy used by Chancellor Rachel Reeves.
• The government’s Leeds reforms consultation is under way and has attracted intense lobbying as it seeks the biggest overhaul of UK financial regulation in over a decade.