UK to ease financial regulations in post-Brexit shakeup




  • In US
  • 2022-12-09 10:12:55Z
  • By Associated Press
 

LONDON (AP) - 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 center.

Treasury chief Jeremy Hunt said Friday that the changes, which follow Britain's departure from the European Union in 2020, will make the U.K. "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 "ringfencing" 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 U.K.'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 center overall.

The Conservative government says the rule changes will create a "smarter regulatory framework." But critics say they could reintroduce the kind of risk that led to the 2008 crisis. The British government at the time was forced to spend billions in taxpayer money to save some banks from collapse.

Opposition Liberal Democrat Treasury spokeswoman Sarah Olney said it was "completely tone-deaf that this government is hiking taxes for hard-working families, while slashing taxes and boosting bonuses for the banks."

"Our financial services need good and smart regulation, not more promises of slashing red tape, or a race to the bottom," she said.

COMMENTS

More Related News

EU judges to keep power over Northern Ireland under new Brexit deal, Brussels insists
EU judges to keep power over Northern Ireland under new Brexit deal, Brussels insists
  • World
  • 2023-02-01 13:51:08Z

European Union judges will continue to have jurisdiction over Northern Ireland under the new Brexit deal on the Irish Sea border, Brussels said on Wednesday.

Britain
Britain's finance ministry sets out draft rules to regulate cryptoassets

Britain's finance ministry laid out its first set of rules to regulate cryptoassets on Wednesday, saying ongoing turbulence in the sector and the collapse of...

How much should we care what the IMF thinks?
How much should we care what the IMF thinks?

The IMF's is just one of many forecasts for the UK economy, how much weight should we give it?

Brockley residents raise over £100K to save ancient woodland
Brockley residents raise over £100K to save ancient woodland

Enough money is raised for a compulsory purchase order, protecting the woodland from developers.

Brexit gloom prevails on UK
Brexit gloom prevails on UK's three-year anniversary
  • World
  • 2023-01-31 12:34:15Z

British Prime Minister Rishi Sunak defended Brexit as a "huge opportunity" on Tuesday, as the UK marked three years since leaving the EU amid economic crisis...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: US