On October 17, the PRA published a speech given by Andrew Baily, Deputy Governor of the Bank of England, which sets out the PRA’s approach towards non-EEA branches. In particular, the PRA intends to let Chinese banks open branches in the UK, part of a wider policy of liberalization.

The PRA tempered this, however, by adding that it does not intend to allow non-EEA branches to undertake critical retail banking functions, such as taking deposits, beyond de minimis levels without a satisfactory reason and high level of assurance, stating that such banks should be limited to wholesale banking. Speech.