Banking regulator has spotted banks involved in “regulatory arbitrage”, and says that boards should be responsible for keeping their institutions in line.
Bank of England. Photo: Chris Dorney, Shutterstock.
One of the most senior figures at the Bank of England has warned that some banks are involved in accounting practices that amount to "pure regulatory arbitrage".
Sam Woods, deputy governor and chief executive at the Prudential Regulation Authority, the body set up to supervise the UK's banks, said it was up to boards of directors to ensure their institutions were complying with the "spirit of regulation".
In a speech on Monday, Woods said: "Whilst we, as supervisors, may identify issues that warrant further investigation, we will not spot everything. Ultimately, it remains the responsibility of senior managers and boards of directors to
For thoughtful journalism, expert insights on corporate governance and an extensive library of reports, guides and tools to help boards and directors navigate the complexities of their roles, subscribe to Board Agenda