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Clash between Chancellor and Bank of England Governor over Revolut

Rachel Reeves and Andrew Bailey have significant disagreements over Revolut's banking license bid.

July 29, 2025 at 07:24 AM

Rachel Reeves and Bank of England at odds on Revolut licence bid

Chancellor Rachel Reeves and Governor Andrew Bailey have disagreements on Revolut's banking license bid.

Rachel Reeves and Bank of England clash over Revolut license bid

Rachel Reeves and Andrew Bailey have clashed over the regulatory proposals for Revolut's banking license. Reeves, the Chancellor, sought a meeting with financial regulators and Revolut to advance the fintech's license application, which has faced numerous delays. However, Bailey, the Governor of the Bank of England, blocked this attempt, emphasizing that regulatory independence from political interference is essential. As it stands, Revolut has missed a crucial deadline in its goal to secure a banking license, complicating its UK expansion amid criticism of the regulatory process.

Key Takeaways

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Rachel Reeves opposed Bailey's decision to prevent a meeting with Revolut.

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Revolut is struggling to meet its banking license deadline after lengthy delays.

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Bailey emphasized the importance of independent regulation for financial stability.

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Tensions rise as Reeves calls for more growth-oriented regulation.

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Revolut’s chief has criticized the UK’s regulatory complexity.

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Competitors like HSBC and Santander are pressing for regulatory reforms.

"It would not be sensible to take it away at this point"

Bailey's response to proposed changes in banking regulations.

"Regulation was a boot on the neck of businesses"

Reeves' criticism of current regulatory practices.

"The chancellor and the governor have a strong and productive relationship"

Official statement from the Treasury regarding Reeves and Bailey's collaboration.

"We can’t compromise on basic financial stability"

Bailey's emphasis on the importance of maintaining stability amidst regulatory changes.

The dispute between Reeves and Bailey highlights a larger tension in the UK's financial regulatory framework, especially as the government pushes for growth in the fintech sector. Reeves advocates for a more flexible regulatory approach, suggesting current regulations stifle innovation. Meanwhile, Bailey insists that maintaining financial stability is paramount, especially given recent challenges in the banking sector. The ongoing conflict could signal a broader clash over the future of financial regulation in the UK and the balance between growth and oversight.

Highlights

Regulation must not hinder innovation in fintech.
Stability and growth cannot be at odds forever.
Revolut's struggle echoes broader issues in financial oversight.
Political intervention shouldn't obstruct regulatory independence.

Potential risks in financial regulation and oversight

The clash between Reeves and Bailey raises concerns over the future of regulation in the UK financial sector, risking stability if political interventions continue to influence regulatory decisions.

As the fintech landscape evolves, the outcome of this clash may influence future regulations.

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revolut banking chancellor financial regulation bank of england finance politics banking

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