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But, rather than launching another transatlantic political dispute, it would be preferable if consenting regulators could privately negotiate a way to smooth the hard edges in the Basel accord. Nonetheless, the notion that the UK might seek a post-Brexit competitive advantage through deregulation — particularly in relation to financial services — has taken hold on the continent, where it has become something of a bogeyman, used to frighten other EU member states. Topics Economics Project Syndicate economists. That is the UK position, too, but it seems no longer to be the French view. That is partly because mortgages are rarely securitised and sold in Europe, whereas in the US, two state-guaranteed enterprises, Fannie Mae and Freddie Mac, stand behind the mortgage market and warehouse loans originated by banks. But the idea that Singapore is a deregulated paradise is not borne out by reality, as anyone who has tried to dispose of a piece of used chewing gum there will know. The Bank of England argues that capital ratios are now adequate, and those who disagree tend to want even heavier burdens on banks. Also, European banks lend more to large, highly-rated corporate customers, which in the US typically fund themselves in the capital markets. Threads collapsed expanded unthreaded. I can identify no notable constituency in British politics that favours significant bank deregulation. If it does diverge, the access of UK-based financial firms to EU markets could be restricted.

In fact, at least as far as the financial sector is concerned, the bigger threat to European regulatory harmony could come from France. Most popular.

Show 25 25 50 All. And we have seen no sign that the pendulum is swinging back toward deregulation, as it has begun to do in the US. Order by newest oldest recommendations. The issue of financial regulation has not featured prominently in the general election debates, which is hardly a surprise. The political prospectuses of both major parties in the UK general election, with their nostalgic ideas for reviving British manufacturing, would seem to suggest that Britain should be reborn as a latter-day Stoke-on-Trent, rather than as a 21st century European Singapore. So, the argument that the UK is about to deregulate its banking system seems odd. Loading comments… Trouble loading? Reuse this content. It is true that some aspects of the global agreement on Basel III, reached — reluctantly in the case of France and Germany — at the end of , weigh more heavily on European banks than on their US peers. Brexit Europe France comment. From the perspective of a London-based bank, this argument seems strange. These are valid points. Those who know Singapore well will quickly recognise that the analogy is far from perfect. And it seems even stranger when one compares the political rhetoric on both sides of the English Channel. True, Singapore has low tax rates unless you wish to import an expensive foreign car , and low levels of public spending — although the latter does not seem to be part of the plan for Singapore-on-Thames advocates.