Senior regulator at Bank of England warns of risks of watering down reform

Paul Fisher, deputy head of the Bank's regulatory arm, says new rules need to be tested in a crisis before being scaled back

A senior official at the Bank of England has warned of the risk of bowing to pressure from lobbyists in the banking industry who want to see a relaxation of rules introduced since the banking crisis.

Paul Fisher, one of the most senior regulators at the Bank, said the new regime - which will force banks to ringfence their high street operations from any investment banking operations - needed be tested during another crisis before any watering down took place.