Britain needs a safer and more robust banking system, central bankers said on Tuesday, saying U.S. President Barack Obama’s plans for a drastic bank sector overhaul were part of a much needed debate on how to fix the industry.
Obama’s proposals, which sent a ripple through financial markets last week, showed that radical reform was on the table, Bank of England Governor Mervyn King said in testimony to lawmakers, and a range of different policy instruments was required.
“We do need a safer and more robust system … that may turn out to be smaller,” King said. “The objective is to create a financial sector that provides the services that the non-financial sector needs.”
Source: Reuters
