Chancellor of the Exchequer Rachel Reeves has expressed concerns about the UK's regulatory crackdown on banks following the global financial crisis, suggesting that it may have been excessive.

In her inaugural Mansion House speech to the City of London, she emphasized the importance of regulators shifting their focus towards promoting economic growth rather than solely focusing on eliminating risk-taking behaviors.

Reeves pointed out that the strict measures implemented over the past decade have hindered growth across the country. She announced plans to provide new directives to the country’s financial watchdogs, aiming to strike a balance between regulation and the need for economic expansion.

This change in approach indicates a potential shift in the regulatory landscape as the UK aims to enhance the contribution of its financial sector to the economy.