Regulator defends rules.
THE head of the Bank of England's regulatory body has denied a "witch hunt" against the financial sector as he defended its actions in tightening up rules.
Andrew Bailey, chief executive of the Prudential Regulation Authority (PRA), made the remarks amid signs of a backlash over some of the changes being introduced in the wake of the financial crisis.
HSBC is considering moving its headquarters out of the UK in the wake of regulatory and structural reforms.
These include "ring-fencing" to separate banks' risky investment arms from retail banking operations serving the likes of mortgage borrowers, current account holders and small businesses.
Former Barclays chairman Sir David Walker had earlier said the arguments for ring-fencing had become redundant.
But Mr Bailey said: "Our desire for change is not out of a wish for witch hunts, but because clear responsibility creates the incentive to manage and mitigate risks."