UK government minister suggests banks sue Bank of England over financial rules

A UK government minister has suggested that banks could sue the Bank of England over strict financial regulations.

Andrew Griffith, MP for Arundel and South Downs and economic secretary to the Treasury, raised the prospect of legal action against the Basel 3.1 reforms during discussions with banking representatives, according to a report by Bloomberg.

The aim of the Basel reforms is to avoid a repeat of the 2008 banking crisis, where some banks held insufficient capital, and requires lenders to hold more capital to issue customer loans.

Changes were broadly agreed upon internationally but will be implemented at a national level.

According to the Independent, however, some banks are unhappy with this new requirement, believing it will put them at a competitive disadvantage to the EU.

The sector raised concerns about the changes to Griffith and aired these issues at a meeting with the minister.