Bailey Denies Rift with UK Government Over Revolut’s Bank License Delay
This article discusses the ongoing situation surrounding fintech giant Revolut’s application for a full banking license in the UK and the relationship between the Bank of England (BOE) and the UK government. Here’s a summary:
- No Falling Out: Bank of England Governor Andrew Bailey denies any conflict with the UK government over the delays in Revolut’s full banking license approval.
- Meeting Cancellation: Reports surfaced that a meeting between the UK Finance Minister, Revolut, and the Prudential Regulation Authority (PRA) was cancelled, allegedly due to Bailey’s intervention.
- Government Interest: The UK government is keen on Revolut’s full license, particularly as tech industry figures challenge tax changes.
- Mobilization Phase: Revolut was granted a restricted banking license in July 2024 and is currently in the “mobilization” phase.
- Deposit Limits: During mobilization, Revolut is limited to holding only £50,000 of total customer deposits.
- Customer Protection: Revolut customers are still served by its e-money unit, not directly covered by the Financial Services Compensation Scheme.
- Rule Changes: Bailey suggests the BOE is open to rule changes to support the fintech sector’s growth while maintaining financial stability.
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