In a speech to business leaders last night, FSA chairman Adair Turner announced his vision for a wide-reaching reform of banking regulation.
In a speech to business leaders last night, FSA chairman Adair Turner announced his vision for a wide-reaching reform of banking regulation.
The proposed measures, which come ahead of a review of the organisation’s activities due in March, including heavier capital requirements, and a broadening of the watchdog’s current remit.
“We need to increase capital requirements not just marginally but by several times,” he said, acknowledging that this would lead to a “significant contraction in the scale of trading books.”
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He said banks should now be required to build up “substantial capital buffers in good economic times… so that they can run them down in bad.”
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