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Bank of England Governor Andrew Bailey emphasized the importance of not overlooking the repercussions of the 2008 global financial crisis amidst a pushback against financial regulations. In a speech at the London campus of the Chicago Booth School of Business, he cautioned on the necessity for ongoing monitoring of new vulnerabilities. Bailey stressed that neglecting the enduring impacts of the crisis and aiming for economic growth should not be seen as conflicting goals.

Recently, finance minister Rachel Reeves has increased pressure on regulators and public entities to stimulate economic growth. In the United States, President Donald Trump's administration has significantly limited the authority of some regulators, leading to a slowdown in their activities.

Bailey pointed out that more regulation is not the exclusive solution to addressing financial risks. He highlighted the Bank of England's efforts to introduce new liquidity measures for non-bank financial entities and advocate for enhanced clearing procedures for gilt repo transactions. As the financial landscape has evolved, Bailey identified emerging vulnerabilities in the non-bank sector, including hedge funds and high-frequency trading firms.

Acknowledging the changes in pricing dynamics, leverage, and liquidity, Bailey underscored the need for continuous monitoring of potential risks and potential development of new tools to manage them effectively. He emphasized the importance of maintaining the flexibility to address risks and ensuring preparedness to tackle unforeseen challenges. Reeves has affirmed that British regulators will retain operational independence under the Labour government. However, she criticized them for focusing more on managing risks than fostering growth.