“The variety and diversity of special interests that the U.K. needs to reconcile is less than in the EU.”
The Bank of England’s Prudential Regulation Authority (PRA) set out plans to adhere closely to the international rules — even taking a potshot at the EU for being an “international outlier.” The PRA has proudly declared its version of capital standards a “landmark package” — it’s the first policy the regulator has designed by itself, post-Brexit, so it wants an A-Grade.
For the most part, the banks have been willing to play ball. It helps that the big lenders — the powerhouses of the City of London — want international consistency in areas like bond trading.
“What you don’t want is to maneuver in a very complex web of different requirements,” said Adam Farkas, chief executive of the Association for Financial Markets in Europe, which represents investment banks.
And as an open, global financial center, the City benefits from international standard that help finance flow across borders.
“There is a strong, shared commitment in the U.K. about adhering to global standards, which is politically more difficult for the banks to challenge than in either of the U.S. or the EU,” said Véron.
