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.”
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.