The Bank of England is set to relax regulations for banks and insurers, reversing some post-2008 financial crisis reforms. Deputy Governor Jonny Woods emphasized the importance of avoiding a 'race to the bottom' in financial regulation while promoting responsible risk-taking. The proposed changes include reducing capital requirements and allowing insurers to make risky investments without prior regulatory approval. The Prudential Regulation Authority has warned that these relaxations could introduce more risk into the UK's financial system, even as they aim to enhance competitiveness. This move comes amid ongoing political uncertainty in the UK, which has been noted to create more challenges for businesses compared to their U.S. counterparts, according to BMO CEO Darryl White.