Andrew Bailey, Governor of the Bank of England, has a message for anyone hoping the UK will loosen its grip on financial regulation: don’t hold your breath.
Bailey has repeatedly pushed back against the UK government’s appetite for deregulation, arguing that rolling back post-crisis financial rules would be a dangerous trade for marginally faster economic growth. His position puts him squarely at odds with Chancellor Rachel Reeves, who has championed reducing regulatory burdens to make the UK more competitive in global finance. Bailey has specifically flagged crypto assets and stablecoins as areas requiring more scrutiny, not less.
No compromise, no exceptions
In an October 3, 2025 speech, Bailey stated plainly that there is “no compromise between financial stability and stoking growth.”
His core argument is straightforward. The financial regulations put in place after the 2008 crisis weren’t the cause of the UK’s productivity problems. Dismantling them wouldn’t fix those problems either, and could instead create new systemic vulnerabilities.
