Bank to promote City as finance hub

THE Bank of England has admitted it will be forced to promote the City of London as a post-brexit financial hub after Rishi Sunak rammed through new competitiveness rules.

Vicky Saporta, executive director at Threadneedle Street, said the Government’s decision to make regulators promote international competitiveness, rather than just protect financial and monetary stability, will significantly change how the Bank’s Prudential Regulation Authority (PRA) operates.

She said: “Let me be clear. I – and the PRA as a whole – know that this is a very important change ...

“This is a big deal. It will make a big difference.

“We take the new objective seriously. We will make rules differently as a result.”

It comes after months of tensions between ministers and the Bank of England over the planned changes, which force regulators to take into account the impact of proposed rules on competition alongside financial stability.

Officials at the central bank have publicly criticised the Government’s plans to deregulate parts of the City in a bid to boost the Square Mile.