Regulation of the UK financial sector remains "robust" despite relaxation of banking safeguards, according to the Prime Minister. An overhaul of banking rules was announced on Friday, which saw the easing of safeguards introduced after the 2008 financial crisis.
Chancellor Jeremy Hunt said the so-called “Edinburgh reforms” of 30 changes will “turbocharge” growth including by easing capital requirements for smaller lenders. But some critics have said the changes will introduce more risk and instability.
Rishi Sunak, who previously worked in investment banking, denied he was acting recklessly by relaxing the rules. “No, the UK has always had and always will have an incredibly respected and robust system of regulation for the financial services sector,” he told broadcasters during a visit to RAF Coningsby in Lincolnshire.
