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Financial stability and depositor protection: Strengthening the framework published today
A consultation on proposals for strengthening the current framework for financial stability and protecting depositors has today been launched by the Chancellor of the Exchequer. The consultation document is published jointly by HM Treasury, the Financial Services Authority and the Bank of England (the Authorities).
Following the recent period of turbulence and instability in global financial markets, the consultation document sets out the Authorities' proposed action, both in the UK and internationally, to achieve five key objectives:
* strengthening the stability of the financial system, both in the UK and globally;
* reducing the likelihood of banks facing difficulties;
* reducing the impact if, nevertheless, a bank gets into difficulties;
* providing effective compensation arrangements in which consumers have confidence; and
* strengthening the Bank of England, and ensuring effective coordinated actions by authorities, both in the UK and internationally, Launching the consultation document, the Chancellor of the Exchequer, Alistair Darling, said:
"Recent months have seen a period of sustained turbulence and instability in global financial markets, with financial firms across the world affected. A response to these episodes requires action, not only from the UK Authorities, but also from international firms and institutions.
The Government is determined that its response is proportionate and appropriate and will therefore consult actively on these proposals, seeking discussions with financial institutions, consumer representatives and counterparts from across the world, to ensure that the final arrangements are effective and deliver the five objectives set out here.
The Treasury Select Committee's report published on 26 January has informed the consultation document published today and I am grateful for its positive contribution."
NOTES TO THE EDITORS
1. Financial stability and depositor protection: strengthening the framework is published jointly by HM Treasury, the Financial Services Authority and the Bank of England (the Authorities). This consultation document (CM7308) is available on the HM Treasury website at http://www.hm-treasury.gov.uk/consultations_and_legislation/consult_liveindex.cfm
2. The deadline for comments on the consultation document is 23 April 2008, during which time the Authorities will be actively seeking views and engagement with stakeholders.
3. The Government intends to follow up this consultation by introducing legislation into the Parliament later in this session.
4. Non-media enquiries should be addressed to the Treasury Correspondence and Enquiry Unit on 020 7270 4558, or by e-mail to email@example.com
5. This press release and other Treasury publications and information are available on the Treasury website. If you would like Treasury press releases to be sent to you automatically by e-mail you can subscribe to this service from the press release site on the website.