Regulators to announce plans to bolster mutuals after Labour vows to double £223bn sector
PositiveFinancial Markets
- City regulators, including the Bank of England and the Financial Conduct Authority, are set to announce plans aimed at enhancing the mutuals and co-operatives sector, following a commitment from the Labour government to double the size of this £223 billion industry. The announcement will take place in Rochdale, the birthplace of the UK's co-operative movement, and will include measures to streamline regulations and provide expert support.
- This initiative is significant as it reflects the government's commitment to fostering growth in the mutuals sector, which plays a crucial role in the UK economy. The establishment of a mutual societies development unit is expected to simplify the application process and enhance regulatory support, thereby encouraging more entities to enter the market.
- The broader context highlights ongoing discussions about financial stability and regulatory frameworks in the UK. Recent decisions by the Bank of England to ease capital requirements for banks indicate a shift towards stimulating lending and economic growth, despite concerns about elevated risks in the financial system. This dual focus on mutuals and traditional banking reflects a complex landscape where regulatory changes aim to balance growth with stability.
— via World Pulse Now AI Editorial System
