Question 2

“Despite the seemingly tough capital, liquidity and corporate governance measures to safeguard financial stability that have been introduced since 2008, the UK financial system remains fragile – more so after the relaxation of prudential regulation since the onset of the COVID-19 pandemic – and this will not change insofar as few financial institutions dominate the market, and shareholder value remains the dominant force in their corporate governance.”

Critically discuss the above statement, including the inherent assumption that financial stability should take precedence over other concerns (e.g., relief for over-indebted consumers and SMEs).