Bank of England (BoE) Deputy Governor Sam Woods has warned that Britain's financial sector could face a crackdown by regulators seeking to enforce their rules more tightly as they try to ensure the financial system remains safe a decade on since the financial crisis.
Woods, who is the head of the Prudential Regulation Authority (PRA), the BoE's banking supervisory arm, told the Telegraph that he wanted to avoid "a return to the buccaneering ‘heads I win, tails you lose' culture that we had before the crisis".
"I think it's possible that as we come out of the reform phase, and enter a phase where we're defending the reforms that have been put in place, that you may see more enforcement activity," Woods told the Telegraph newspaper.
I think it's possible that as we come out of the reform phase (...) that you may see more enforcement activity"
Woods also warned that any bankers hoping for less strict regulations after Brexit would be disappointed. He said it makes "no sense whatsoever" for a giant global trading centre like London to let its domestic banking system be "completely jumbled up" with the riskier side of finance.
"I will defend ringfencing of banks to my last drop," he added.
Woods, who was initially in the frame to replace Mark Carney as the British central bank governor, said he will have an eye on the job "next time around." Andrew Bailey, chief executive of the Financial Conduct Authority (FCA), will succeed Mark Carney as the BoE's governor on March 16.