BoE’s King says UK needs more robust banking system

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

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza