|    FM Home   |    FM News   |    FM Forum   |    FM Blog   |    17th of January 2018
|   Banking  |   Insurance  |   Property  |   Mortgages  |   Economy  |   Investments  |   Credit Cards  |   Debt  |   Loans  |   Pensions  |   Companies  |  

Banking News feed Banking News

Economy News feed Economy News

All Financial News feed All Financial News




Osborne to announce new powers for central bank

Bookmark and Share

by Kay Mitchell
”Osborne

Chancellor George Osborne is today expected to hand over more responsibility to the Bank of England.

The move comes just a few days after the BBC reported that City Watchdog, the Financial Services Authority (FSA), will be retained – as a subsidiary of the Bank of England.

It was expected that the watchdog would be axed under initial proposals from the Conservative Party.

However, Mr Osborne will today unveil plans to keep part of the FSA, while also creating a new Financial Policy Committee, comprising of Bank executives with a direct responsibility for financial stability and senior representatives from the FSA.

The FSA was set up in 1997 by then Chancellor Gordon Brown and its objective was to regulate the financial services industry.

However, oversight of the financial system was shared between the FSA, the Bank of England and the Treasury – something which Mr Osborne has long been critical of.

In his first Mansion House speech, he is expected to say that the FSA will continue to have the responsibility of overseeing individual banks.

The move is intended to prevent another credit crisis after the FSA was the subject of some criticism for not doing enough to prevent or limit the crisis in the financial markets.

The Chancellor is also expected to confirm that Britain’s banks will be hit with a new levy.

Mervyn King, the Bank of England’s Governor, will also give a speech at the Mansion House tonight.

Discuss this in the Finance Markets forums

Story link: Osborne to announce new powers for central bank



News posted: June 16, 2010

Financial Services:





Related financial stories to: Osborne to announce new powers for central bank:
Previous: «
Next: »

Visited 2930 times, 2 so far today

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.

Tags: , , , , , ,