Bank of England Blocks Chancellor Reeves' Revolut Meeting Over Interference Concerns

Bank of England Governor Andrew Bailey blocked a proposed meeting between Chancellor Rachel Reeves, fintech giant Revolut, and the Prudential Regulation Authority to discuss Revolut’s efforts to obtain a full UK banking license, citing concerns over political interference in the Bank's independent regulatory role. The intervention highlights growing tensions between the UK Treasury's pro-growth, deregulatory agenda championed by Reeves and the cautious approach of financial regulators. Reeves has criticized regulatory constraints as inhibiting business growth, urging for looser rules to stimulate the economy, while Bailey has emphasized the importance of maintaining financial stability and rejected characterizations of regulation as overly burdensome. Revolut, after a prolonged three-year process and initial regulatory hesitations, currently holds a limited banking license restricting deposit holdings, with full authorization still pending. The episode underscores a broader clash over regulatory culture, with some political figures sympathizing with Reeves’s push for reform, while regulators remain wary of compromising oversight. Both the Treasury and the Bank of England maintain that their relationship is productive despite these disagreements, with the PRA continuing to lead Revolut’s licensing process at the operational level.