The Bank of England has reportedly announced plans to ease regulations on banks and insurance companies.
Sam Woods, chief executive of the Central Bank Prudential Regulation Authority, will discuss new initiatives to meet the government’s demands to boost economic growth in a House of Lords committee on Wednesday (8 January). He said that financial resilience and economic competitiveness are “inextricably linked.” .
Mr Woods added that changes could be achieved without triggering a “race to the bottom” over financial regulation, his comments at the Financial Services Regulatory Commission were reported by the Financial Times (FT). .
According to the report, Mr. Woods said that granting retroactive authorization would eliminate the need for insurers to obtain prior approval for investments. It also regularly outlines plans to lower reporting requirements for banks this year, which have already been cut by a third for insurance companies.
Woods said the Matched Investment Accelerator would accelerate investments by insurance companies that would otherwise be on hold pending regulatory approval.
Mr Woods said solvency rules for insurers had already reduced the sector’s reporting requirements by a third. He doubted whether the PRA would be able to provide banks with similar reductions, but added: “I’m sure there are some things that could be done there” and told MPs that a proposal would be tabled later this year. I told you.
The FT report raises concerns that other countries may loosen many of the safeguards put in place in response to the 2008 financial crisis, as US President-elect Donald Trump has promised a more liberal approach to regulating the financial sector. He pointed out that there are concerns.
In fact, a second Trump administration could reduce the powers of some U.S. financial regulators or even eliminate them altogether.
“In the meantime, however, fundamental issues still exist, key among them being considering the risks and benefits inherent in bank-fintech partnerships, cybersecurity, capital requirements, and innovation. ,” PYMNTS wrote late last month.
For example, the shockwave caused by Synapse’s bankruptcy and the loss of access to funds for tens of thousands of customers will continue to reverberate this year.
“One of the trends that will continue in the coming months will be how partnerships are set up and how records management is redefined,” PYMNTS wrote. “Three federal banking regulators announced in July that they are considering ‘additional measures’ to help banks effectively manage risks associated with bank-fintech arrangements.”
