RegulationCorporate GovernanceKing to get tough on banks’ balance sheets

King to get tough on banks' balance sheets

Mervyn King has warned that central banks and financial institutions were contemplating tighter regulations in light of the current credit crisis

The governor for the Bank of England, has warned that central banks and
financial institutions were ‘extremely likely’ to toughen regulation in light of
the current credit crisis it was reported in the
Daily
Telegraph
.

‘It is too early to foresee clearly where the long-term direction will go.
But serious thinking and a willingness to contemplate radical change will be
necessary,’ King said.

The tone, in his speech to the Bank of Israel, may stoke fears of a crippling
new set of regulations. King said that ‘radical change’ was being contemplated
for Wall Street and the City to combat future crisis.

King said: ‘Much hard thought will need to be given to the structure and
nature of banking regulation in the future.’

His comments reflect on the Financial Services Authority, the primary
regulator, which recently announced its shortcoming regarding the Northern Rock
debacle.

Further reading:

Mervyn
King warns of ‘radical change’

Treasury
MPs take on FSA over Northern Rock

Bank
facing Treasury grilling over Northern Rock

Related Articles

Corporate governance: staying ahead in accountancy

Corporate Governance Corporate governance: staying ahead in accountancy

3m Alia Shoaib, Reporter
One in 20 audit firms quit as market evolves

Audit One in 20 audit firms quit as market evolves

1y Kevin Reed, Writer
Colin: #EURef bankers a problem

Business Regulation Colin: #EURef bankers a problem

1y Taking Stock
PwC and Deloitte chiefs sign Remain letter

Business Regulation PwC and Deloitte chiefs sign Remain letter

1y Kevin Reed, Writer
Leader: Audit competition drives change, not necessarily quality

Accounting Firms Leader: Audit competition drives change, not necessarily quality

2y Kevin Reed, Writer
EU audit reform to open up £10bn market for firms

Accounting Firms EU audit reform to open up £10bn market for firms

2y Richard Crump, Writer
Best Practice: Saffery Champness managing partner Rob Elliott

Accounting Firms Best Practice: Saffery Champness managing partner Rob Elliott

2y Calum Fuller, Reporter
Standard Life Investments opposes EY's appointment as Shell auditors at AGM

Accounting Firms Standard Life Investments opposes EY's appointment as Shell auditors at AGM

2y Richard Crump, Writer