Sir Edward John Watson Gieve - Former Deputy Governor for Financial Stability, Bank of England
Banks should be afforded more time and patience from regulators to enable them to improve their business in such difficult economic circumstances.
That is the opinion of Sir John Gieve, former deputy governor of the Bank of England, who believes that giving financiers additional leeway would support lending and stimulate growth, the Daily Telegraph reports.
During a speech delivered at Fathom Consulting's Monetary Policy Forum, the expert indicated that regulatory bodies can help banks by delaying the implementation of new rules, while also clarifying how the industry will be structured in the future.
"Pressure on liquidity and capital, plus continued debate on what is an allowable banking model, is pushing them to deleverage more than they might be forced to anyway," he stated.
Sir John went on to assert that the softer approach to regulation being used in the US is proving more effective than the strict measures favoured by bodies in Britain, as this is allowing lenders the breathing space they need to grow.
By Claire Archer