The Bank of England governor has reportedly clashed with chancellor Rachel Reeves over efforts to accelerate Revolut's authorisation as a fully-licenced bank.
Revolut finally won approval for a banking licence last year, after a three-year wrangle with regulators. That approval triggered a 'mobilisation' stage during which time Revolut’s banking division can accept total deposits of just £50,000 while building out its controls and infrastructure.
At the time, it was thought that Revolut would be able to end the mobilisation period within 12 months, but that date came and went on 25 July, with no sign of further progress.
According to the Financial Times, Reeves pushed for a three-way meeting between Treasury officials, the Prudential Regulatory Authority and Revolut, to clear stumbling blocks towards the vendor exiting the mobilisation phase.
Citing 'people familiar with the matter', the paper says that Reeves wanted to see Revolut win full regulatory clearance as soon as possible, but her efforts to force the issue were thwarted by Bailey, who intervened to cancel the planned meeting. Bailey was motivated by the Bank's cherished reputation for independence from the ruling party in the UK.
The Treasury told the FT: “The chancellor and the governor have a strong and productive relationship and the government fully supports the operational independence of the Bank of England.” It declined to comment on the abortive Revolut meeting. The BoE and Revolut declined to comment.