Print friendly version 22 Jul 2008

Government launches plans to deal with failing banks

The Government has launched a consultation on a new scheme designed to reduce the impact of a failing bank on the economy.

The consultation document was launched jointly by HM Treasury, the Financial Services Authority and the Bank of England. It builds on issues such as proposals for financial stability and depositor protection. The proposals will be subject to a period of consultation before the introduction of legislation later in this Parliamentary session.

Chancellor of the Exchequer Alistair Darling, said: “No system of regulation can or should prevent the failure of each and every firm, but we must do everything possible to reduce the impact of problems which could pose a wider threat to stability.

“The challenge is to ensure that the Authorities can act quickly and decisively to take appropriate steps to resolve failing banks. These proposals for a special resolution regime give the Authorities the full range of powers they need.”

STAY UP TO DATE: Subscribe to email alerts Subscribe to RSS