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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