Financial Policy

  • Financial Policy

    "Finance for growth"

    We believe the financial industry needs to change but in a way that allows it to continue to make a vital contribution to the UK economy. We seek to promote a constructive and vigorous debate to promote the policies that can allow this to happen.

    Read more about the unit here

    About Financial Policy

  • Capital Requirements

    Gold plate or lead weight?

    Bank lending to private companies in the UK has fallen in every single year since the financial crisis, dropping a staggering £57 billion since 2008. Capital Requirements: Gold plate or lead weight? says that the primary reason for this lack of credit is due to the financial regulator’s desire to raise the capital requirements of UK banks.

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    Capital requirements

  • Reform of the Bank of England

    A new Bank for a new Governor

    The Bank's focus on monetary policy meant that it was not prepared for the impact of the freezing up of the financial markets and the collapse of some of the UK’s biggest banks. Without major reform to the Bank, the new financial regulatory regime risks being as flawed as its predecessor.

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    BoE reform

  • Should the City be scared of Europe?

    Sharon Bowles MEP, Chairwoman of the European Parliament's Committee on Economic and Monetary Affairs, spoke to Policy Exchange about new European Union legislation and directives which could impact on the UK's financial services industry.

    Watch Sharon Bowles summarise her speech • Full speech coming soon

    EU and the City

  • Executive Compensation

    Rewards for success not failure

    Executive Compensation advocates introducing “clawbacks” to all bonus contracts as the best way to end rewards for failure in the boardroom. Clawback would also be an effective way of ensuring shareholders are able to reduce the outgoing pay of a poor performing director who had decided to resign.

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    Executive Compensation

Latest Financial Policy In the news

  • Treasury opposes Osborne’s RBS shares transfer to public

    20 May 2013 | Treasury opposes Osborne’s RBS shares transfer to public

    • Writing in The Times, banking editor Sam Coates refers to Policy Exchange's upcoming report looking at how the government might sell off our nationalised banks. The report will examine different options for selling off RBS and Lloyds, including the possibility of a mass share distribution to the public.

  • David Cameron raises prospect of 1980s-style RBS sell-off

    16 May 2013 | David Cameron raises prospect of 1980s-style RBS sell-off

    • The Guardian refers to an upcoming banking report by Policy Exchange, which will examine various possibilities for selling off RBS and Lloyds, including the option of a mass share distribution to the public.

More Financial Policy news

Latest Financial Policy Publications

  • Capital Requirements: Gold plate or lead weight?

    15 March 2013 | Capital Requirements: Gold plate or lead weight?

    • Bank lending to private companies in the UK has fallen in every single year since the financial crisis, dropping a staggering £57 billion since 2008. Capital Requirements: Gold plate or lead weight? says that the primary reason for this lack of credit is due to the financial regulator’s desire to raise the capital requirements of UK banks.

  • Reform of the Bank of England: A new Bank for a new Governor

    03 December 2012 | Reform of the Bank of England: A new Bank for a new Governor

    • Reform of the Bank of England argues that the Bank of England's focus on monetary policy meant that it was not prepared for the impact of the freezing up of the financial markets and the collapse of some of the UK’s biggest banks. The report argues that without major reform to the Bank, the new financial regulatory regime currently going through Parliament risks being as flawed as its predecessor.

More Financial Policy publications

Latest Financial Policy blogs

  • Funding for Lending isn’t working: Why the Bank is missing the point

    24 April 2013 | Funding for Lending isn’t working: Why the Bank is missing the point

    • James Barty, Policy Exchange's Senior Consultant for Financial Policy, sets out why the Funding for Lending Scheme is not working, making the argument from his report Capital Requirements that high capital requirements are preventing banks from lending to small businesses. James says the Bank of England must promote credit growth and revert to buying corporate debt directly from the banks.

  • Bank of England weakens economy by demanding further bank capital

    28 March 2013 | Bank of England weakens economy by demanding further bank capital

    • James Barty, Policy Exchange's Senior Consultant for Financial Policy, writes in response to the Bank of England's recent announcement that banks must raise £25 billion extra in capital requirements, arguing that this measure will stop banks lending and prevent economic recovery. James cites findings from recent Policy Exchange report Capital Requirements which found bank lending to private companies has fallen since 2008 by £57 billion due to capital requirements being set too high.

More Financial Policy blogs

Latest Financial Policy Event

More Financial Policy events