Finance
Britain's BoE cuts big bank oversight to every two years amid deregulation debate
Published by Global Banking and Finance Review
Posted on January 15, 2026
Bank of England Reduces Big Bank Oversight to Every Two Years
Changes in Bank Oversight Frequency
By Lawrence White
Impact on Financial Institutions
LONDON, Jan 15 (Reuters) - The Bank of England's Prudential Regulation Authority will cut the frequency of supervisory meetings for big banks to every two years, it said on Thursday, as Britain's financial authorities respond to political pressure to cut red tape and promote growth.
Global Trends in Banking Regulation
"As we set out our priorities for 2026, we are also updating our approach by moving from an annual to a two-year supervisory cycle for firms," BoE Deputy Governor Sam Woods said in a statement.
Responses from Experts
"This will allow us to make our operations more efficient and help streamline firms' interactions with the PRA."
The BoE will reduce the frequency of Periodic Summary Meetings, formal reviews that consider the risks a given regulated bank may pose to the central bank's broader objectives, to every other year, the BoE said.
Other recent moves to cut red tape for banks, in response to pressure from the Labour government to promote growth alongside maintaining financial stability, have gone too far, some experts have said.
Two former BoE officials on Thursday said the central bank had made a mistake by lowering capital requirements for banks at a time when risks to the finance sector are on the rise.
GLOBAL DRIVE TO CUT RED TAPE FOR BANKS
Seventeen years on from the global financial crisis, regulators worldwide are looking for ways to ease the regulatory burden on banks, led by the Trump administration in the U.S.
Bank regulators appointed by President Donald Trump are seeking to delay and water down the introduction of new rules, and they are reviewing and rewriting existing capital regulations, freeing up capital for banks that politicians hope will boost lending and, ultimately, growth.
Recent changes in Britain include simplifying capital requirements for smaller firms, cutting red tape for insurers, and reducing regulatory requirements for customer-owned building societies and other mutual credit providers, the BoE said.
(Reporting by Muvija M and Lawrence White. Editing by Elaine Hardcastle and Mark Potter)
Frequently Asked Questions about Britain's BoE cuts big bank oversight to every two years amid deregulation debate
1What is the Bank of England?
The Bank of England is the central bank of the United Kingdom, responsible for issuing currency, managing monetary policy, and ensuring financial stability.
2What are capital requirements?
Capital requirements are regulations that require banks to hold a certain amount of capital reserves to protect against financial risks and ensure stability.
3What is banking supervision?
Banking supervision refers to the regulatory oversight of banks to ensure they operate safely, soundly, and in compliance with laws and regulations.
