Lords Committee to quiz bank of England on how the UK will adapt to new EU financial regulation
On Tuesday 4 November the Lords Committee investigating the EU financial regulatory framework will hear from two deputy governors of the Bank of England, and the Economic Secretary to the Treasury.
Sir Jon Cunliffe and Andrew Bailey will give evidence to the House of Lords EU Economic and Financial Affairs Sub-Committee, which is reviewing the effectiveness of the current regulatory system. Mr David Rule, Executive Director from the Prudential Regulation Authority will also be giving evidence alongside the Deputy Governors.
The House of Lords Economic and Financial Affairs EU Sub-Committee will be asking these witnesses in particular whether new EU rules on how banks manage their risks are working, and if new, harmonised sanctions against non-compliant banks are keeping them in check.
They will be followed in a later session by Treasury Secretary Andrea Leadsom MP. As well as questions on the regulatory framework, she will be asked for an update on the EU request to the UK to pay an extra 2.1bn euros into the EU budget.
Evidence will first be heard at 10.35am from Sir Jon Cunliffe, Deputy Governor, Financial Stability, Bank of England; Andrew Bailey, Deputy Governor for Prudential Regulation, Bank of England; and David Rule, Prudential Policy Executive Director, PRA.
Then later at 3.00pm evidence will be heard from the Economic Secretary to the Treasury Andrea Leadsom MP.
Questions that the Committee will put to the witnesses include:
- What is your overall assessment of the regulatory reforms that have been brought in since the outbreak of the financial crisis?
- What does a level playing field look like when it comes to harmonisation at the international and EU level?
- What is your assessment of the ECB's stress tests?
- The new EU regulatory framework includes new rules on governance and remuneration, as well as a new harmonised sanctioning regime. How well do these help banks manage risk and rewards?
- Did regulation reform focus on financial stability at the expense of growth?
- How effective has the EU's attempt to harmonise rules in the form of the Single Rulebook been?
- How can the UK ensure that its expertise is brought into play?
- What update can you give on the EU budget top-up request?
The Committee evidence sessions will take place at 10:30am and 3pm in Committee Room 3 in the House of Lords, on Tuesday 4 November.
