BBC NEWS | Business | Banks to face tougher regulation
UK banks will face tougher regulation and consumers will get more protection, under reforms to the financial system proposed by the chancellor.
Alistair Darling outlined a new council to oversee financial stability, but kept the current system of regulation.
Shadow chancellor George Osborne said the government's reforms were an "inadequate response" to the crisis.
He said the Conservatives would abolish the current system and give supervision powers to the Bank of England.
Mr Darling reinforced the tripartite regulation system between the Bank of England, the Financial Services Authority (FSA) and the Treasury, which was introduced by Labour in 1997.Some of the key proposals included:
• More help for consumers - a national money advice line funded by the banks and a strengthened deposit protection scheme
• Greater competition - the FSA and Office of Fair Trading to ensure that new players can enter the banking market
• Executive pay - the FSA to report yearly on whether banks have met the new code of conduct on remuneration, and bank boards to be strengthened
• Tougher banking regulation - banks required to hold more capital to cover any future losses and more powers for regulators to take over failing banks
• A new Council for Financial Stability - the FSA, the Bank of England and the Treasury to meet regularly and report on the systemic risks to financial stability.
I love how we get all of these regulations now. Did no one think of this years ago?