The Bank of England governor has reportedly clashed with Chancellor Rachel Reeves over efforts to expedite Revolut’s authorization as a fully licensed bank.
Revolut finally obtained approval for a banking license last year after a three-year struggle with regulators. This approval initiated a ‘mobilisation’ phase during which Revolut’s banking division can accept up to £50,000 in deposits while developing its controls and infrastructure.
Initially, it was anticipated that Revolut would complete the mobilization period within 12 months; however, that deadline passed on July 25 without any indication of further progress.
According to the Financial Times, Reeves sought a three-way meeting involving Treasury officials, the Prudential Regulation Authority, and Revolut to address obstacles preventing the vendor from moving out of the mobilization phase. Sources indicate that Reeves aimed to see Revolut achieve full regulatory approval promptly, but her efforts were hindered by Bailey, who canceled the planned meeting to safeguard the Bank’s independence from the UK government.
The Treasury stated: “The chancellor and the governor have a strong and productive relationship, and the government fully supports the operational independence of the Bank of England,” but declined to comment on the canceled Revolut meeting. Both the Bank of England and Revolut also refrained from commenting.