Dispute Over Revolut's Banking License

Bank of England (BoE) Governor Andrew Bailey has reportedly intervened to prevent a meeting between Chancellor of the Exchequer Rachel Reeves and the BoE's Prudential Regulation Authority (PRA) concerning Revolut Group Holdings Ltd.'s banking license, as revealed by the Financial Times (FT).

Political vs. Independent Decision-Making

Insiders indicate that Reeves is pushing for Revolut to be licensed as a bank swiftly, especially after the fintech company received a limited permission. Bailey, however, blocked the meeting, emphasizing the necessity for such decisions to remain free from political influence.

Implications for the UK Banking Sector

Bailey has previously cautioned Parliament about the adverse effects of political interference on the UK's banking sector and its policies regarding retail and investment banking. Despite these tensions, the Treasury maintains that Reeves and Bailey share a "strong and productive relationship" and reaffirmed the government's commitment to the BoE's independence.