Bailey speech links regulation, growth and AI risks

Andrew Bailey, Governor of the Bank of England, delivered a speech arguing that well-designed regulation can support sustainable economic growth and outlining policy priorities for bank capital, payments modernization, and artificial intelligence.

• He said the Bank has announced changes to the capital regime last week to remove anomalies, and that regulation should be framed around positive objectives such as financial stability, assured deposits, and support for lending.
• He said the Bank has renewed RTGS, approved the first Digital Securities Sandbox participant for live activity, is working with HMT on DIGIT eligibility as collateral, and issued proposed rules for systemic sterling stablecoins; he also called for stronger international coordination on frontier AI testing and cyber resilience.
• The speech was published on 14 July 2026 and is a policy address rather than a transaction announcement or deal memo.