UK 'should not over-regulate banks'

12 May 2011

Banks in the UK should not be over-regulated, as such a move could result in London's financial sector losing its status as a world leader.

This is the opinion of outgoing BNP Paribas chairman Michel Pebereau, who told the Financial Times that Britain appears to be emulating the example set by France by adding more layers of regulation.

The industry figure said he is a great proponent of the City of London and noted the focus needs to be turned away from the question of regulation.

"I think we need very strong supervision for every bank," he explained.

The newspaper noted that Mr Pebereau's comments suggest he is an advocate of the traditional British approach to regulation - which sees financial groups following the spirit of the rules, rather than the letter of them.

Chris Leslie, Labour's Treasury financial secretary, recently claimed that the bank taxation system in the UK is in need of an urgent review.

By Asim Shah

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