Share Action

Banking turmoil shows need for more effective regulation of the financial sector

On the 28th March 2023, the Treasury select committee held a hearing on recent banking turmoil.

Commenting on the Bank of England governor’s appearance in front of the Treasury select committee today, Lewis Johnston, Director of Policy at responsible investment NGO ShareAction, said:

“It is welcome to see politicians asking hard questions about the role of financial regulators in today’s hearing. Government regulation of the financial sector is inadequate and is failing to harness its full potential to tackle the urgent social and environmental challenges we face.

“This should be a wake-up call to the Chancellor that his plans to deregulate the financial sector would push it in a dangerous direction for people and planet. Requiring the Financial Conduct Authority to focus on competitiveness could undermine its role as a strong, impartial regulator, while loosening capital requirements for insurers contradicts principles of caution and prudence and impedes the proactive action needed to transition to a net-zero world.

“We need to see more effective regulation of the finance sector that fully embeds the need for financial institutions to incorporate the economic, social and environmental impacts of their activities in their investment decisions.”

Notes to editors

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For more than 15 years, ShareAction, the responsible investment NGO, has been working to shape a world where the financial system serves our planet and its people. Through research, campaigns and advocacy we mobilise global investors to drive up labour standards, tackle climate change, protect the natural world, and improve people’s health. We push policymakers to ensure the financial system is working in the best interests of people and planet. Visit or follow us @ShareAction to find out more.

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