Blog: Jeremy Hunt to press ahead with ‘Big Bang 2.0’ despite banking crisis – The Telegraph

The Chancellor told peers on Tuesday that some deregulation could boost the financial stability in the UK.

Mr Hunt told the House of Lords Economic Affairs Committee: “Sticking with the status quo is not necessarily the best thing to do to ensure financial stability.”

He was quizzed on whether he would reconsider his so-called Edinburgh Reforms, set out in December. They include relaxing ring-fencing rules on smaller banks, mandating financial regulators to focus on boosting economic growth and loosening rules that hold bankers personally responsible for rule breaking on their watch.

He said: “I made it very clear when we announced the Edinburgh Reforms that we would not unlearn the lessons from the financial crisis.

“I think you will see when we publish our recommendations as to which reforms we want to proceed with that we recognise the importance of the protections that have been put in place and we don’t want to undermine them.”

Sam Woods, the head of the Bank of England’s Prudential Regulation Authority, has warned that “the reform package as a whole increases risk”.

A Treasury source said that the recent crisis engulfing the banking industry has not affected the Chancellor’s approach to the Edinburgh Reforms.

He said: “There has been no change whatsoever because none of them have anything to do with Britain’s regulatory system.”

The comments came as Janet Yellen, the US Treasury secretary, signalled that the US government would extend support to smaller lenders in a bid to shore up confidence in the country’s banking system.

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