BoE governor warns Reeves weakening banking rules risks repeat of 2008 crisis

There is no a trade-off between financial stability and growth for the City of London, Andrew Bailey said. Photograph: Andy Rain/EPA

The governor of the Bank of England has warned the chancellor, Rachel Reeves, against a radical watering-down of City banking rules because it would risk repeating the mistakes that led to the 2008 financial crisis.

Andrew Bailey said that while some changes to the rules could be helpful, wholesale reforms to unleash risk-taking in the City of London in the name of economic growth would be counterproductive.