UK banks push for deeper financial alignment with Europe

The report stops short of calling for a return to the EU Single Market, focusing instead on strengthening the existing 2023 Memorandum of Understanding. By proposing that financial services become a dedicated agenda item at annual summits, banks aim to foster technical collaboration on capital risk weighting and cross-border mobility. Specifically, the industry suggests allowing professionals to work in each other’s jurisdictions for up to 90 days.

This push for convergence highlights a growing divide within the City of London. While these banks advocate for tighter alignment to reduce friction, other market voices maintain that the UK should leverage its post-Brexit autonomy to prioritize domestic regulatory goals. The outcome of the upcoming summit will test whether the government is willing to trade some of its legislative independence for smoother access to the European financial ecosystem.