UK insurer Phoenix Group is close to securing a £500m ($717m, €634m) buyout of smaller rival Sun Life from French insurance giant Axa, The Financial Times has reported.

Banks do derive benefits from negative interest rates, which are a net positive for the economy, said José Viñals director of monetary and capital markets at the IMF.

It has been a busy few months in the world of financial regulation with new bosses at the main regulators and an imminent restructuring of the governance of regulation within the Bank of England.

This week, acting CEO of the FCA (Financial Conduct Authority), Tracey McDermott, is to leave the regulator in July when Andrew Bailey takes over.

Brows are starting to furrow at prudential regulators as they start to worry about the connections between individual insurer solvency and the wider economy.

This week, Sam Woods, executive director of Insurance, was appointed Deputy Governor of the Bank of England for Prudential Regulation, and chief executive of the Prudential Regulation Authority (PRA) from 1st July – an appointment expected to be welcomed by the insurance industry.