
UK authorities release depositor protection proposals
Daily news headlines
LONDON – The UK Treasury, the Bank of England and the Financial Services Authority have released the proposals of their joint consultation paper, Financial stability and depositor protection: strengthening the framework, to address the failings that led to the run on Northern Rock.
The three authorities – making up the UK’s tripartite system for banking supervision – have been dogged by criticism and political infighting over their handling of last year’s run on the Newcastle-based lender. The document represents a joint attempt to address the failings of the tripartite system as a whole.
The proposals include five key actions aimed at addressing financial instability in the UK and internationally: reducing the likelihood of banks facing difficulties; the impact of the difficulties should they occur; providing effective compensation to instill consumer confidence; strengthening the Bank of England; and improving coordination between UK and international authorities.
“The government is determined that its response is proportionate and appropriate, and will therefore consult actively on these proposals, seeking discussions with financial institutions, consumer representatives and counterparts from across the world to ensure the final arrangements are effective and deliver the five objectives set out here,” said the UK’s finance minister Alastair Darling.
Darling stated that the Treasury Joint Committee’s report released on January 26 had informed the proposals. On January 30, after parliamentary pressure, the government also extended Mervyn King’s stay as governor of the Bank of England for another five-year term.
The deadline for comments on the consultation document is April 23, 2008.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact [email protected] to find out more.
You are currently unable to copy this content. Please contact [email protected] to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email [email protected]
More on Regulation
Risk management
Nasdaq whacked with $36 million fine over Aas default
Swedish regulator’s fine poses serious questions over default management and margining, while providing few answers
Receive this by email