Global Market: BoE governor calls for balanced banking rules, rejects deregulation push

Bank of England governor Andrew Bailey, speaking at the annual Mansion House dinner, rejected outright deregulation of UK banks and stressed balanced capital rules to support lending without weakening deposit safeguards. The BoE recently announced plans to ease certain leverage-related capital requirements for banks, continuing a relaxation begun in December. Bailey also renewed his call for stronger international coordination on testing frontier AI models before deployment, citing Starling Bank's inability to access Anthropic's AI tools as evidence of the need for domestic AI capability.