Bailey links UK growth, regulation, and AI risks

Andrew Bailey, Governor of the Bank of England, delivered a speech on growth and regulation at the Mansion House Financial and Professional Services Dinner in London on 14 July 2026.

• He argued that well-designed regulation should support growth, and said the Bank is focusing on three current policy issues: bank capital, payments, and artificial intelligence.
• He said the Bank had announced changes to the capital regime last week, that the first Digital Securities Sandbox participant was approved for live activity yesterday, and that the Bank is working on tokenised money, systemic sterling stablecoins, and next-generation retail payments infrastructure.
• On AI, he said AI is likely to be the next GPT and raised concerns about clean power supply for datacenters, agentic AI liability, frontier AI cyber risks, and the need for internationally coordinated testing and bare metal recovery capabilities.