Bank of England Governor Andrew Bailey cautioned on Friday against easing financial regulation as the memory of past crises fades, stressing that central banks must remain vigilant in monitoring emerging risks.
“There is … a rising danger that, as the pro-cyclical tide shifts, we find ourselves restricted in gathering the vital data needed on new areas of vulnerability,” he said in remarks released for an event organized by the Dutch central bank.
Britain’s finance minister, Rachel Reeves, has argued that excessive regulation is stifling economic growth and has signaled plans to pare it back.
Bailey, however, countered that stricter oversight of banks introduced after the 2008 global financial crisis was not responsible for the UK’s sluggish investment levels and poor productivity growth in the years since.
