|
|
04 Jan 2008
The chancellor is to overhaul the insolvency regime for banks, in moves designed to head off another Northern Rock-style banking crisis.
Alistair Darling revealed the moves in an interview with the Financial Times today.
The changes will see a series of 'triggers' put in place, including a request to the Bank of England for an emergency loan, allowing the FSA to step in.
Deposits would then be secured and repaid quickly or be parcelled off to another bank.
Northern Rock's problems were not related to its solvency but to a lack of liquidity, and the chancellor also wants to beef up the FSA's powers to find out more information about banks' liquidity positions.
Darling will introduce legislation in May and a consultation within the next few weeks.
Further Reading:
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment