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Select committee: Financial Services Regulation Committee

Growth of private markets in the UK following reforms introduced after 2008

Open Opened 1 Jul 2025

Financial Services Regulation Committee Inquiry on parliament.uk ↗

Inquiry scope (the committee's words)
This inquiry looks into the growth of private markets in the UK following reforms introduced after 2008. In particular, the inquiry will examine whether the regulatory capital and liquidity reforms introduced after 2008 have reduced banks’ ability or willingness to lend, pushing risk away from the banking sector and towards private markets. It will also look into how much visibility the Bank of England has on the size of these private markets, their interconnections with the banking sector, and any potential spillover risks.

Where it stands

The inquiry is open, opened 1 July 2025.

The committee has published 1 report, most recently 3rd Report - Private markets: Unknown unknowns on 9 January 2026.

The government's response

Response from HM Treasury to the Committee’s 3rd Report of Session 2024–26, ‘Private markets: Unknown unknowns’

Published 9 March 2026. The deadline was 9 March 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government "welcomes the report" and "fully agrees" on the need for vigilance about financial stability risks from private markets, while rejecting "any notion that the Treasury is passive" in the face of them.

  • On the Bank of England's System-Wide Exploratory Scenario, the Government welcomes it and "strongly supports" it. Should it indicate risks that "may warrant a policy action", the Treasury will work with the Bank on what may be "necessary and proportionate" action.
  • On regulators' powers, the Treasury keeps them "under ongoing review" and is "committed to ensuring regulators' powers" allow access to appropriate information. "Where necessary", it will act to strengthen protections while keeping regulation "proportionate and targeted".
  • On data, the Government agrees it is important to understand trends in corporate debt and lending, and "recognises the need to strengthen the coverage and granularity of relevant data".
  • On SME lending, it points to the PRA's "SME lending" adjustment in Basel 3.1 and a commitment to support industry to roll out 350 banking hubs "by the end of this Parliament". The FPC will give a further update on its bank capital review on 7 July.

Read the government's response ↗ Report an error

Response from the Bank of England to the Committee’s 3rd Report of Session 2024–26, ‘Private markets: Unknown unknowns’

Published 6 March 2026.

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Bank of England and PRA welcome the Committee's report, agree with several of its conclusions on private markets monitoring and data, and describe a private markets system-wide exploratory scenario (PM SWES) with a final report due in early 2027.

  • On monitoring, the Bank and PRA "agree that the rapid expansion of global private markets presents both opportunities and risks for the UK" and say they "will continue to monitor" securitisation markets, including significant risk transfers and collateralised loan obligations, "carefully as they evolve".
  • On the PM SWES, the Bank "anticipate[s] having largely completed firm engagement and analysis for the exercise in 2026, with a final report to be published in early 2027", and expects to publish key findings over 2026, in line with milestones such as Round 1 results.
  • On data, the Governor "agree[s]" that appropriate data, proportionate to the risks, is essential, while saying the Bank is "always mindful" of balancing data gaps against the cost of regulation, including the Government's 25% administrative cost reduction target.
  • On SME lending, the PRA describes its Small Domestic Deposit Taker regime (capital regime from 1 January 2027), an enhanced IRB model review process effective for applications from 1 January 2026, and says it is "currently working with HM Treasury to explore" further ring-fencing reform.

Read the government's response ↗ Report an error

Reports

All reports

Evidence

  • 12 oral evidence sessionsLatest 19 November 2025
  • 32 witnesses
All evidence

Recent activity

Reports

1 report

Oral evidence sessions

12 sessions

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Date Session and witnesses Source
19 Nov 2025
Oral evidence session
Daniel Rusbridge · HM Treasury, Lowri Khan CB CBE · HM Treasury, Lucy Rigby KC MP · HM Treasury 		View ↗
11 Nov 2025
Oral evidence session
Michael Roberts · HSBC, Stephen Dainton · Barclays 		View ↗
5 Nov 2025
Oral evidence session
Charlie Nunn · Lloyds Banking Group, Nathanaël Benjamin · Bank of England, Robert Begbie · NatWest Group 		View ↗
29 Oct 2025
Oral evidence session
Blair Jacobson · Ares Management Corporation, Daniel Leiter · Blackstone, Joseph Pinto · M&G plc, The Rt Hon Michael Moore · British Private Equity & Venture Capital Association (BVCA), Tristram Leach · Apollo Global Management 		View ↗
21 Oct 2025
Oral evidence session
Andrew Bailey · Bank of England, Sarah Breeden · Bank of England 		View ↗
15 Oct 2025
Oral evidence session
David Postings · UK Finance, Nikhil Rathi · Financial Conduct Authority, Sheree Howard · Financial Conduct Authority, Stephen Braviner Roman · Financial Conduct Authority 		View ↗
17 Sep 2025
Oral evidence session
Mark Steele · OakNorth Bank, Nigel Terrington · Paragon Banking Group 		View ↗
10 Sep 2025
Oral evidence session
Apostolos Gkoutzinis · Milbank LLP, The Lord King of Lothbury KG GBE · Bank of England 		View ↗
3 Sep 2025
Oral evidence session
Irene Graham OBE · The ScaleUp Institute, Louis Taylor CBE · British Business Bank, Martin McTague OBE · Federation of Small Businesses (FSB) 		View ↗
23 Jul 2025
Oral evidence session
Nicolas Véron · Bruegel, Professor Arthur E. Wilmarth, Jr. · George Washington University Law School 		View ↗
9 Jul 2025
Oral evidence session
Dr Narine Lalafaryan · Faculty of Law, University of Cambridge, Professor Ludovic Phalippou · Saïd Business School, University of Oxford 		View ↗
2 Jul 2025
Oral evidence session
Professor Kern Alexander · University of Zurich, Professor Simon Gleeson · Faculty of Law, University of Oxford 		View ↗

Who gave evidence

32 witnesses

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WitnessOrganisationSessions
Andrew Bailey · Governor Bank of England 1
Apostolos Gkoutzinis · Partner in Corporate Finance, Securities and Leveraged Finance Milbank LLP 1
Blair Jacobson · Partner and Co-President Ares Management Corporation 1
Charlie Nunn · CEO Lloyds Banking Group 1
Daniel Leiter · Senior Managing Director, Head of International and Global Head of Liquid Credit Strategies, Blackstone Credit and Insurance Blackstone 1
Daniel Rusbridge · Deputy Director for Personal Finances and Funds HM Treasury 1
David Postings · Chief Executive UK Finance 1
Dr Narine Lalafaryan · Assistant Professor of Corporate Law Faculty of Law, University of Cambridge 1
Irene Graham OBE · CEO The ScaleUp Institute 1
Joseph Pinto · Chief Executive Officer of Asset Management M&G plc 1
Louis Taylor CBE · Chief Executive Officer British Business Bank 1
Lowri Khan CB CBE · Director of Financial Stability HM Treasury 1
Lucy Rigby KC MP · Economic Secretary to the Treasury HM Treasury 1
Mark Steele · Chief Risk Officer OakNorth Bank 1
Martin McTague OBE · National Chair Federation of Small Businesses (FSB) 1
Michael Roberts · Chief Executive Officer of HSBC Bank plc and Chief Executive Officer of Corporate and Institutional Banking HSBC 1
Nathanaël Benjamin · Executive Director for Financial Stability Strategy and Risk Bank of England 1
Nicolas Véron · Senior Fellow Bruegel 1
Nigel Terrington · Chief Executive Officer Paragon Banking Group 1
Nikhil Rathi · Chief Executive Financial Conduct Authority 1
Professor Arthur E. Wilmarth, Jr. George Washington University Law School 1
Professor Kern Alexander University of Zurich 1
Professor Ludovic Phalippou · Professor of Financial Economics Saïd Business School, University of Oxford 1
Professor Simon Gleeson · Visiting Professor Faculty of Law, University of Oxford 1
Robert Begbie · Chief Executive Officer, NatWest Commercial and Institutional NatWest Group 1
Sarah Breeden · Deputy Governor for Financial Stability Bank of England 1
Sheree Howard · Executive Director, Authorisations Financial Conduct Authority 1
Stephen Braviner Roman · General Counsel and Chief Risk Officer Financial Conduct Authority 1
Stephen Dainton · President of Barclays Bank plc and Head of Investment Bank Management Barclays 1
The Lord King of Lothbury KG GBE · Former Governor Bank of England 1
The Rt Hon Michael Moore · Chief Executive Officer British Private Equity & Venture Capital Association (BVCA) 1
Tristram Leach · Partner and Co-Head of European Credit Apollo Global Management 1

Correspondence

1 letter

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PublishedDirectionLetter
8 Jan 2026 To committee Letter from Lucy Rigby KC MP, Economic Secretary to the Treasury, to Lord Forsyth of Drumlean regarding the Committee’s inquiry into the growth of private markets in the UK following reforms introduced after 2008 (18 December 2025)