In a statement today (2 July), the committee said it will focus on whether the regulatory capital and liquidity reforms introduced post-2008 have reduced banks’ ability or willingness to lend, pushing financial activity towards private markets.
‘Risk aversion’ from FCA and PRA stunting UK growth and competitiveness
In addition, the inquiry will examine how much insight the Bank of England has into the size of these private markets, their links to the banking sector, and any potential spillover risks.
“We have launched this inquiry to determine whether these reforms have disincentiv…
