Recently, the Bank of England announced a coordinated effort to enhance liquidity through U.S. dollar “swap line arrangements” in order to “support the smooth functioning of U.S. dollar funding markets,” according to the bank. Prior to that, the two countries laid the groundwork to smooth out something else: fintech regulation and collaboration.
According to the Conference of State Bank Supervisors (CSBS), regulators met earlier this month to discuss similarities and differences between U.S. and U.K. fintech regulatory structures, with members of the CSBS sitting down with their counterparts to hash out the details of potential collaboration.
“UK and the US are strong economic partners, and I hope this trip reinforces the importance of the close relationship between our financial ecosystems,” said Antony Phillipson, Her Majesty’s Trade Commissioner for North America and Consul General in New York, in a statement. “We are also both innovation hubs, particularly for Fintech, and I look forward to seeing how we can work even more closely with these agencies going forward.”
The U.S. delegation members that participated in the meeting were:
- Bret Afdahl, director of the South Dakota Division of Banking and Chairman of the CSBS
- Manny Alvarez, commissioner of the California Department of Business Oversight
- Charles Cooper, commissioner of the Texas Department of Banking
- Deborah Hagan, secretary of the Illinois Department of Financial and Professional Regulation
- Kevin Hagler, commissioner of the Georgia Department of Banking and Finance
- Linda Lacewell, superintendent, New York State Department of Financial Services
- Matthew Lambert, non-depository counsel of the CSBS
- Margaret Liu, senior vice President and deputy general counsel of the CSBS
- John Ryan, president and CEO of the CSBS
Afdahl said the topics discussed ranged from lending, to payments to banking innovation and a potential collaboration could help set the global tone for business regulation going forward. “U.S. state regulators work together to take a networked approach to the supervision of financial services, and we welcome this opportunity to expand that network to include international partners,” he said.
FROM TWITTER
The U.K. Department for International Trade published its blueprint (PDF) for a free trade agreement, specifically citing its potential benefits as better wages and jobs, greater choice and lower prices. According to the blueprint, trade between the two countries was valued at £220.9 billion in 2019. The analysis claims a free trade agreement would bolster trade by £15.3 billion over time.
“My sincere thanks to the government of the United Kingdom for hosting us and facilitating the open exchange of ideas between state regulators and UK financial regulators,” said Ryan, in a statement. “As the space between local and global–brick-and-mortar and internet-based–shrinks and new financial services emerge, regulators must work together to support innovation and drive economic development while combating bad actors and protecting consumers.”
