Finance Sector Set to Double According to Mark Carney

Bank of England governor Mark Carney is predicting that the finance sector will double over the next 25 years, post-brexit, but is calling for regulators to be watchful that we do not return to the pre-2007 relaxed stance. Carney says that the government must be watchful, and resist pressure to wind down regulation in a bid to stimulate the economy.

UNDEFINED - Monday, August 07, 2017

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In a recent interview with the Guardian, Carney explained that while a thriving city meant more jobs and more revenues alongside them, the City should not be given too much leeway in the form of overly relaxed revenues. We need to be mindful that the risky speculation of a decade ago is not repeated, to similar results.

Carney said that the pressure to move to ‘Singapore-on-Thames’ - a light-touch regulation version of the City - might attract businesses to the UK after Brexit, but that the long term price would be too great. He believes that post-Brexit the level of regulation should be kept the way it is, which is currently greater than the current international norms. He does not want to see a position where the country becomes the lowest common denominator in a system which is 10 times GDP. His goal is to see the UK be a thriving financial system that is 15 to 20 times GDP, with strong cross-border capital flows, and a strong and clear focus. Achieving that, however, will require the government keeping a focus on long term goals rather than short term gain.


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