UK Set to Change Bank Regulation

Posted on 08. Jul, 2009 in General News

The UK government is set to announce its plans to reform the financial system to prevent future crises.

But the White Paper will leave many questions unanswered about the role of the key regulators. The Lib Dems say it is unlikely to go far enough.

New powers will be proposed to curb bank lending and prevent asset bubbles, such as the housing boom, undermining the real economy.

The government has put up more than £1 trillion to bail out failing banks. The aim, according to Chancellor Alistair Darling, is a “significant toughening up of the regulatory system” in order to “learn the lesson of what went wrong… and make sure we reduce those risks”.

However, many of the detailed proposals in the White Paper will need further discussion with international regulators and the financial services industry, so only a limited number will be included in parliamentary legislation this autumn – leaving the next government to sort out many tricky issues.

BBC – Wednesday, 8 July 2009

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