Darling outlines more power for BoE

In his first keynote address to business leaders, chancellor Alistair Darling
said the Bank of
(BoE) would now be accountable for the UK’s financial stability in
addition to its statutory objective of setting interest rates.

Part of his reforms if UK’s financial system would include setting up a new
Financial Stability Committee to guide the Bank’s operations in this field to
‘bring valuable, external expertise with City experience to bear on the Bank’s
decision making’, the BBC News reports.

Darling indicated the proposals would clarify and enhance the powers of BoE
and those of the Financial Services Authority (FSA) and improve co-ordination
between the regulators.

More details are understood to be in a letter yesterday to John McFall,
Treasury Select Committee chairman.

Further reading:

Darling signals shake-up of UK’s financial system

the BBC News story

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