Finance
Britain's PRA stops short of daily liquidity monitoring amid Trump tariff turmoil
Published by Global Banking & Finance Review®
Posted on April 29, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 29, 2025
2 min readLast updated: January 24, 2026
PRA CEO Sam Woods states daily liquidity checks are unnecessary despite Trump's tariffs. UK plans new investment strategies to boost growth.
By Sinead Cruise and Lawrence White
LONDON (Reuters) -Britain's banking stability watchdog has not yet seen reason to require banks to report daily liquidity levels despite the market chaos unleashed by U.S. President Donald Trump's tariffs, Prudential Regulation Authority CEO Sam Woods told a hearing of lawmakers on Tuesday.
"What we've done is step up monitoring of the firms, which we always do in these situations. We've not though taken it to the highest level," Woods said, pointing to recovery in share prices, a lack of tension in funding markets and broadly unchanged customer behaviours.
Woods' hearing before the cross-party Treasury Select Committee came as HSBC warned that loan demand and credit quality could suffer from Trump's global trade war, in some of the most concrete detail yet on how the tariffs are hitting banks' businesses worldwide.
Despite the risks of an economic slowdown later this year, Britain's left-leaning Labour government has been vocal on how banks and financial regulators should support its growth agenda, shifting away from the risk-averse mentality that prevailed after the 2008 financial crisis.
To that end, Britain will unveil a "concierge" service for potential international investors this summer, Woods said, as part of a broader bid to encourage more investment in the country.
Britain can safely pull back on some financial regulation, he told lawmakers, but any push to greatly reduce the capitalisation of the banking sector would require significant debate given the risks.
(Reporting by Sinead Cruise and Lawrence White; Editing by Kirsten Donovan and Jan Harvey)
The PRA has not seen sufficient reason to mandate daily liquidity reporting despite the market chaos caused by Trump's tariffs.
HSBC cautioned that loan demand and credit quality could be negatively affected by the ongoing global trade war initiated by Trump.
Britain plans to introduce a 'concierge' service for potential international investors this summer to encourage more investment in the country.
The Labour government has been vocal about how banks and financial regulators should support its growth agenda, indicating a shift away from strict regulation.
Woods mentioned that while Britain can safely reduce some financial regulations, any significant reduction in banking sector capitalisation would require extensive debate due to associated risks.
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