‘Brexit will be a litmus test of the future of international cooperation.’ – Marc Carney, Bank of England
On Thursday, the Bank of England Governor Marc Carney delivered a speech at the Institute of International Finance in Washington. In his speech, Carney said that financial regulations implemented after the global financial crisis should be able to transform in accordance with unexpected changes. He also stated that the Bank of England would stick to a ‘dynamic’ approach towards financial regulations, ensuring the global financial system’s stability. Meanwhile, in the US, Donald Trump started the process of creating new financial regulations, arguing that financial restrictions are hampering economic growth. Carney also claimed the global financial system was at a ‘fork in the road’, providing boost to mutual suspicion between regulators. In addition, he highlighted that Britain’s withdrawal from the European Union would be a test for cooperation between financial regulators. The BoE Governor said that the Financial Stability Board was working on a revamp of the current financial regulations since the financial crisis, stressing that the FSB do not have the authority to force countries to act in accordance with its view. Back in January, the Congressman Patrick McHenry urged the Fed Chair Janet Yellen to stop cooperating with the FSB, claiming that the FSB’s rules run counter to the US interests.
