UK issues banking reform report

Daily news headlines

Treasury Committee out with its latest report on bank reform

LONDON – The House of Commons Treasury Committee has published a report on banking reform that follows on from earlier consultation papers published by the UK tripartite authorities (HM Treasury, the Bank of England and the UK Financial Services Authority) in the wake of the Northern Rock crisis. The most recent report makes further legislative recommendations and addresses the practicalities of implementing such changes by the end of February 2009.

Recommendations include strengthening the role of the Tripartite Committee to fill a central role for communications between Treasury, the Bank of England and the FSA in crises and in regular stress scenario testing.

Heightened supervision and the Special Resolution Regime (SRR) is another focus. The report says the FSA must be placed under statutory duty to prepare and consult on a code of practice for heightened supervision. The Bank of England will also be given the power to recommend institutions to be placed under the SRR, and any decisions taken must be explained via the Tripartite Committee.

The report also recommends strengthening existing deposit protection measures and the statutory establishment of the Financial Stability Committee along the lines of the Monetary Policy Committee.

The report can be read in full by clicking the following link.

http://www.publications.parliament.uk/pa/cm200708/cmselect/cmtreasy/1008/1008.pdf

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 info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here