Finance
Bank of England's Bailey warns against rolling back financial regulation
Published by Global Banking & Finance Review®
Posted on October 3, 2025
1 min readLast updated: January 21, 2026
Quick Summary
Bank of England's Andrew Bailey warns against easing financial regulations, stressing the importance of monitoring new risks.
Bank of England's Bailey Sounds Alarm on Easing Financial Regulations
LONDON (Reuters) -Bank of England Governor Andrew Bailey warned on Friday of the danger of rolling back financial regulation as memories of past crises faded, and said central banks needed to keep close track of new potential threats.
"There is ... a growing risk that because of this, as the pro-cyclical tide turns, we are inhibited from collecting necessary data in new areas of risk," he said in a text released for an event hosted by the Dutch central bank.
British finance minister Rachel Reeves has said she wants to scale back regulation which she believes is holding back growth in the economy.
Bailey said he did not think that tougher regulation of banks in Britain after the 2008 global financial crisis was to blame for a lack of investment and weak productivity growth in the years since.
(Reporting by David Milliken and Yoruk Bahceli; editing by William James)
Key Takeaways
- •Bailey warns against easing financial regulations.
- •Central banks must monitor new threats closely.
- •Rachel Reeves suggests scaling back regulations.
- •Bailey defends post-2008 financial regulations.
- •Investment and productivity not hindered by regulations.
Frequently Asked Questions about Bank of England's Bailey warns against rolling back financial regulation
1What is financial regulation?
Financial regulation refers to the laws and rules that govern financial institutions and markets to ensure stability, transparency, and protection for consumers and investors.
2What is a central bank?
A central bank is a national institution that manages a country's currency, money supply, and interest rates, and oversees the banking system.
3What is a financial crisis?
A financial crisis is a situation in which the value of financial institutions or assets drops rapidly, leading to widespread economic instability.
4What is pro-cyclical regulation?
Pro-cyclical regulation refers to policies that amplify economic fluctuations, often tightening during downturns and loosening during booms, potentially increasing financial instability.
5What is investment productivity?
Investment productivity measures the efficiency and effectiveness of investments in generating economic output or returns over time.
