LONDON (Reuters) - Bank of England Governor Mark Carney said on Friday that planned changes to financial regulation in the United States did not appear to amount to a wholesale rolling back of rules that would endanger international cooperation.
U.S. President Donald Trump wants to reverse some financial regulation that he says restrains lending in the U.S.
Carney, speaking at Thomson Reuters, said that discussions with the United States had been encouraging so far, and that U.S. regulation had some unique elements that did not affect consistent standards of regulation globally.
“The U.S. authorities have, over the last several years, done several things that are unique to the United States” Carney said. “They may adjust some of those elements, just like we could always adjust certain things that are bespoke to the United Kingdom and go above and beyond international standards.
“That wouldn’t necessarily have any implication for the ability to build this system, to take full advantage of the system of mutual recognition, and we should recognise that.”
“I’d be very wary of interpreting anything that the U.S. administration does as a rollback of regulation, of a turning inwards, of a fragmentation,” he said.
Carney also said Britain would “work hard” with European authorities to ensure that an “appropriate amount” of euro business continues to be cleared in London.
EU policymakers have insisted that the clearing of euro-denominated derivatives, which London dominates, should shift to the euro zone after Brexit, which would threaten thousands of jobs in the City of London.
Reporting by William Schomberg and Rachel Armstrong, writing by David Milliken; editing by Kate Holton