To ask Her Majesty's Government what assessment they have made of the impact of the regulatory framework on the trade finance gap; and what discussions they are (1) having, and (2) have had, with the Prudential Regulation Authority about reducing the trade finance gap.
14 December 2020
The UK’s prudential regulatory framework is underpinned by internationally agreed Basel standards in which the UK plays a key role through its membership of the Basel Committee on Banking Standards (BCBS).
Through the Financial Services Bill, the Government is delegating responsibility for the implementation of the latest Basel standards to the Prudential Regulation Authority (PRA).
As part of that, the PRA will be required to consider and report on the likely effect of its rules on the sustainable provision of finance to businesses and consumers in the UK.
The Government maintains a regular dialogue with the PRA to ensure our future prudential regulation is appropriate and proportionate for the UK.