Several of Britain’s largest lenders told the Financial Times the Bank of
England’s UK-US bank capital requirements comparison is flawed, saying it
ignores a growing Wall Street advantage from large-scale digital/software
investment. A recent study cited by banks finds US lenders gained an edge after
deregulatory moves under the Trump administration, partly because regulators
treat bank software investment differently. The lenders are lobbying the new UK
government to relax post-2008 capital rules to spur growth and IT spending. City
executives say the appointment earlier this month of former Barclays executive
Katherine Braddick as head of the UK’s top banking regulator should increase
their influence.
