The Governor of Bank of England has warned on the risks of removing financial regulation in a bid to drive for development, amidst efforts Chancellor To scrap the red tape.
Andrew Bailey Said in a speech in Amstardam He can see the evidence that “the risk of history is showing signs of repeating itself”, which fades memories about the financial crisis.
He stressed that there is no “no trade closed” between financial stability and ambitions for strong growth and competition.
“If the child is thrown out with bath water to speak, and financial stability is resumed in terms of its importance, we will not achieve our objectives,” he said.
On an event organized by message, Dutch Central Bank comes as Chancellor Rahel reeves Continues proceeding with a plan to score the regulation back.
In July, Ms. Reeves launched the “Leeds Reforms” package of changes in the financial services industry to withdraw the restrictions and encourage more financial risks in a hope, it could increase economic growth.
A week later, Mr. Bailey warned of tearing the financial crisis-fencing rules on banks, emphasizing the need for consumers.
Shortly thereafter, he also blocked a meeting employed by Ms. Reves to address the regulation of the Revolute, due to the concerns of political intervention in the Central Bank’s monitoring process.
On Friday, Mr. Bailey highlighted an principle of economist Hyiman Minsky that “as time passes, memories of a financial crisis fade and this raises questions on the constant need of reactions”.
He said: “This shows signs of repeating the risk of history itself, for example recalling the strength of deragulation argument before the financial crisis.”
The governor also told the audience that he “pushes back” against the arguments that led to a decline in productivity growth since post -crisis regulation and weak investment over the years.