Economic secretary to the Treasury Bim Afolami told Bloomberg that, although the collapse of SVB showed the UK resolution regime worked, businesses’ rush to withdraw money in the aftermath showed the need for it to be solidified.
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Although he did not provide a timeline, the City minister said the consultation will come “quite soon”.
He told Bloomberg News: “When the consultation comes out, there will then be a debate about exactly how best to get that strong foundation for institutions that may not be covered at the moment.”
Afolami added the government will also launch a plethora of measures to reduce regulatory burdens as well as a series of consultations.
He also addressed the Treasury Select Committee’s recent criticism of the Edinburgh Reforms, which called the changes a “damp squib”, explaining that it will take time for the reforms to “bed in”.
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A review of the senior managers regime is also on the table, which would lead to an evolution in the regulations rather than an overhaul.
Afolami added: “We are not throwing it out, it is a really important part of our regulatory structure.”
