BoE's Bailey: UK should not create a low regulation, high risk financial system

Bank of England Governor (BoE) Andrew Bailey said on Wednesday that now is not the time to have a regional argument on finance with the European Union, as reported by Reuters.

Additional takeaways

"We need a global, not a regional, regime on financial services to be effective."

"The UK should not create a low regulation, high risk, anything goes financial centre and system."

"Some specific elements of solvency 2 have not proved to work for that market as well as hoped, so it is right that we should review it."

"We are intending to consult on plans to amend on-shored EU rule in order to maintain the previous requirements of excluding software assets from bank capital."

Market reaction

The British pound showed no reaction to these comments and the GBP/USD pair was last seen trading at 1.3842, rising 0.2% on a daily basis.