Jamie Dimon, the chief executive of JPMorgan Chase, has publicly criticised the UK’s proposed bank capital requirements, describing them as “unfair” and warning they could weaken London’s position as a global financial centre. Speaking at a banking conference in London on Thursday, Dimon argued that the current trajectory of regulation would place British banks at a disadvantage compared to their US and European rivals.
“The UK is going it alone with stricter rules that go beyond what Basel III originally intended,” Dimon said. “That’s not just bad for banks — it’s bad for the economy, for lending, and for pension savers who rely on a strong financial sector.” His comments come as the Bank of England’s Prudential Regulation Authority continues to consult on the final shape of Basel 3.1 rules, which are designed to strengthen bank resilience but have drawn pushback from industry figures.
The FTSE 100 edged 0.3% lower on Thursday to 8,215 points, with banking stocks among the weaker performers. Barclays fell 0.8%, Lloyds Banking Group dropped 0.6%, and NatWest slipped 0.5%. Analysts at RBC Capital Markets noted that Dimon’s intervention could increase political pressure on regulators to soften the proposals. “His views carry weight in the City, and this may embolden UK bank executives to push harder for a more balanced outcome,” they said in a note.
The debate over capital requirements has been ongoing since the UK left the European Union, with the government keen to maintain the City’s competitiveness while adhering to global standards. Critics of the stricter rules argue they could reduce lending to businesses and households, while supporters say they protect taxpayers and prevent future bailouts. For UK investors, the outcome matters directly: higher capital requirements can constrain bank dividends and share buybacks, which are a key source of income for pension funds and retail shareholders.
Dimon’s intervention also reflects broader transatlantic tensions over financial regulation. JPMorgan, which has a significant presence in London, has previously warned that excessive regulation could push business activity to New York or Singapore. The Bank of England is expected to publish its final rules later this year, with a review of their economic impact due shortly after.