US Banks: UK Operations

Oral Answers to Questions — Treasury – in the House of Commons at 12:00 am on 17 January 2017.

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Photo of Phil Boswell Phil Boswell Scottish National Party, Coatbridge, Chryston and Bellshill 12:00, 17 January 2017

Whether he has made an assessment of the potential merits of introducing additional rules to ring-fence the operations of US banks in the UK.

Photo of Simon Kirby Simon Kirby The Economic Secretary to the Treasury

US banks operating in the UK are regulated by the Prudential Regulation Authority and the Financial Conduct Authority. The UK’s ring-fencing regime applies to all banks operating in the UK that are above the threshold of holding £25 billion of core deposits.

Photo of Phil Boswell Phil Boswell Scottish National Party, Coatbridge, Chryston and Bellshill

Does the Minister agree that the likely rolling back of the Dodd–Frank Act in the US, combined with the watering down of banking conduct reform, could result in deregulated American banks with high-risk lending patterns operating in the UK?

Photo of Simon Kirby Simon Kirby The Economic Secretary to the Treasury

The UK and US financial sectors have significantly increased their resilience since the crisis, and the PRA has the powers it needs to regulate overseas firms operating in the UK to ensure the stability of the UK financial system.

Photo of Mike Wood Mike Wood Conservative, Dudley South

What steps are the Government taking to ensure that banks meet the 2019 deadline for separating retail banking from riskier investment banking activity?

Photo of Simon Kirby Simon Kirby The Economic Secretary to the Treasury

That is well under way and we are keeping a close eye on it.