Head of the UK regulator Lord Adair Turner is expected to propose a new body to focus on macro-prudential regulation
LONDON - In his widely anticipated review of banking regulation, to be published on March 18, Lord Adair Turner of Ecchinswell, chairman of the Financial Services Authority, is expected to propose a new macro-prudential role that will provide oversight of the entire British banking system. Under the proposal, regulators will be able to impose stricter rules on bank lending and balance sheets if financial stability is found to be at risk.
The move is an attempt to fix the much-criticised tri-partite system of regulation in the UK between the FSA, the Bank of England and the Treasury. Any new rules would be set by the Treasury in its role as de facto head of the tri-partite system, but its decisions would be informed by the Bank of England, which will remain responsible for financial stability. The FSA would implement the rules on a bank-by-bank basis.
More on Regulation
Isda AGM: Proposed trading book rules are “nuts” says BNP Paribas’ Ramambason
Isda AGM: Hedge fund plans to share non-cleared swaps around to reduce trading costs
Isda AGM: Canadian banks will start reporting LCR in second quarter
IMF argues redemption policy regulation should address illiquid assets
Sign up for Risk.net email alerts
Sponsored video: Elseware
Oxford professor David Vines argues that the carrot is as important as the stick
Sponsored webinar: IBM
Watch highlights of this year's London conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.