Britain To Allow Banks To Take On More Risk To Stay Competitive

  • Britain will change its rulebook to allow banks to take more risks to help to keep the City of London's status as a leading global financial centre, a government minister said on Tuesday, November 29.
  • The City of London was largely cut off from the European Union by Brexit and faces greater competition from centres like Paris and Frankfurt, as well as longstanding rivals like New York and Singapore.
  • The EU will next week set out a new law to force banks in the bloc to shift some of their euro derivatives clearing from London to Frankfurt.
  • City minister Andrew Griffith said a new financial services bill now being approved in parliament will bring financial rule books up to date, make regulators nimbler, and cut insurance capital buffers while maintaining high standards.
  • "The overall thrust of things is to allow more risk. You get a reward from taking risks, you shouldn't be risk off, we just need to manage that in an appropriate way," Griffith told a Financial Times event.

(Source: Reuters)