Friday, June 26, 2009
The Bank on financial stability
Posted by David Smith at 09:00 AM
Category: Thoughts and responses

As the battle over who should be responsible for preventing a re-run of the banking crisis continues, the Bank of England has set out some thoughts in its Financial Stability Report. It sets out five principles for reform of regulation, while warning that the system remains vulnerable.

"Policies on market discipline, bank regulation, market infrastructure and bank structure and size should be based on their impact on overall financial system stability, not just on individual firms," it says. "This systemic perspective has not always shaped policy around the world sufficiently in the past." The report can be accessed here.