Kemi Badenoch’s new plan for the City could help spur growth, argues Norbert Sobolak, who wants major changes to financial regulation.
Sobolak backs ending bank ring-fencing, revising capital requirements and replacing the Financial Ombudsman Service. He says British political parties have not offered a positive agenda for financial services since the 2008 crisis, despite the sector’s role in financing businesses and home purchases.
Ring-fencing applies above a deposit threshold, which Sobolak argues encourages smaller banks to curb growth rather than take on its costs. The government’s independent Skeoch Review puts those costs at £1.5bn a year, and A&O Shearman found at least four banks had limited their growth. Sobolak says the Bank of England’s recent easing of leverage rules is not enough on its own.
Please note! Comments are published by readers. The opinions expressed may not reflect the position of the editorial team. NYCT is not responsible for the content of readers' opinions and asks authors to observe moral standards, not to incite national or racial hatred, and to avoid rudeness. Think before you speak. You are responsible for your words! By publishing an opinion, you agree to the rules! If this request is ignored, NYCT reserves the right to deprive the user of the ability to leave comments.