The British government announced its plans for financial market reform on Wednesday, focusing on the way banks are regulated.
The chancellor of the exchequer, Alistair Darling, published a paper setting out the government’s reform proposals, including new powers for the Financial Services Authority to impose higher capital requirements on firms that present greater risks to the financial system, and measures to deal with the potential failure of systemically significant institutions; a strengthened framework for financial stability, including a new Council for Financial Stability involving the Bank of England, the FSA, and the Treasury, designed to monitor system-wide financial stability. It also pledged to make reforms to help consumers make better informed financial choices, including the creation of a new independent consumer education body.
“Our central objective must be to ensure that — as we come through the downturn — we reform and strengthen our financial system and rebuild it for the future. With consumers that are better informed, financial institutions that are better managed, and markets that are better regulated,” Darling said.
The FSA issued a statement welcoming the proposals, noting that the government has endorsed the key findings of the Turner Review, conducted by its chairman to recommend reforms in response to the global financial crisis.
Brits announce banking regulation overhaul
FSA will have authority to impose higher capital requirements on firms that present greater risks to the financial system
- By: James Langton
- July 8, 2009 July 8, 2009
- 16:02