Financial stability and
depositor protection: Strengthening the framework published today
HM TREASURY News
Release (07/08) issued by The Government News Network on 30 January 2008
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 public.enquiries@hm-treasury.gov.uk
5. This press release and other Treasury publications and
information are available on the Treasury website. If you would
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