EU: Catherine McBride reveals ‘boost to the economy’
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Economist and Senior Fellow to the think tank The Centre for Brexit Policy, Catherine Mcbridge, explained that certain national banks could be further liberated without the constraints of the European Union. During an interview with Express.co.uk, she noted that the Capital Requirements from the Bank of England could be lower for banks that intend to operate solely in the UK. She noted this could mean banks allow businesses to borrow more money.
This would have a knock-on impact of improving the economy as it attempts to recover from Covid, according to the economist.
Ms Mcbride said: “There is one thing that I know the Bank of England is currently looking at changing.
“The EU decided that all banks in Europe, no matter how small or how unlikely, have the technical ability to trade in another EU country or set up an operation there.
“Because of this the EU made it so they all have to comply with the Basel Capital Requirements for internationally active banks.
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“This applied to all the national UK banks like Lloyds and Metro bank which had no intention of ever opening branches in France or anything like that.
“This is also true for small building societies that had converted to banks and some specialists banks that are run in the UK.”
The economist explained how this could ultimately result in a greater support for local businesses.
“All of those banks could find that their capital requirements from the Bank of England are lowered because they are not internationally active and have no intention of becoming so.
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“That will allow them to lend more money to local businesses.
“This would be a great boost to the economy now as we come out of the lockdown.”
Ms Mcbride also highlighted how farmers could get ahead and see greater productivity if EU rules are ditched.
She said: “I hope that DEFRA (Department for Environment, Food and Rural Affairs)is looking at some of the regulation around farming.
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“The UK could improve its own productivity if it can get around the EU’s precautionary principle.
“This has stopped our farmers using the same crop varieties other farmers outside of the EU are using.
“Mainly because the EU just decided blanket bans on genetically modified.”
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