Regulation of Banks

Regulation of Banks

According to Lord Hunt of the Wirral, Northern Rock and recent regulatory problems mean the jury is still out as to who should be responsible for regulating banks.  Referring to recent events, Lord Hunt said the general view was the Bank of England understood banks better than the FSA, however he stated he was waiting for the Treasury select committee report before he reached any conclusion.  

Our view is that the right people with the correct experience can be the only people in a position to police banks.  In short, if you have never been a CEO or Financial Director of a Bank you cannot possibly have the experience to know what is reality and what is ‘jackanory’ in the operating procedures of a huge financial institution.  

It is irrelevant whether it should be the FSA or the Bank of England, it is the personnel who regulate.

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