The Bank of England (BoE) has expressed its willingness to collaborate with the British government on potential reforms aimed at stimulating economic growth by easing certain regulatory

requirements for the financial services sector, Deputy Governor Sam Woods announced on Monday.

With U.S. President Donald Trump expected to roll back banking regulations in the United States, financial regulators globally are facing calls to adopt more lenient stances to remain competitive.

In a letter addressed to Prime Minister Keir Starmer, Woods highlighted five key areas where the BoE is already working to support the government’s pro-growth objectives. These initiatives include simplifying post-Brexit regulations for smaller banks and encouraging insurance companies to invest more in British assets.

“Beyond these five areas, we are keen to explore broader changes with our colleagues in the Treasury and the Department of Trade and Enterprise to simplify and streamline the UK regulatory framework or support economic growth in other ways,” Woods wrote in the letter dated January 15.

Potential reforms under consideration include establishing a "concierge service" to attract foreign investors, revising the BoE’s regulatory principles—such as those related to climate change—and reducing overlapping governance and disclosure requirements.

Woods acknowledged that discussions on these broader changes are still in their early stages and emphasized the need to engage with the government to assess their feasibility and value.

Earlier this month, Woods cautioned against a "race to the bottom" in financial regulation, warning of risks associated with the possibility that the United States might not fully participate in global efforts to strengthen the banking system. Photo by Katie Chan, Wikimedia commons.