New Financial Reform Act to give greater powers to BoE

Wednesday 26th May 2010
A new Financial Reform Bill was announced in yesterday’s Queen’s Speech. It will give the Bank of England much more control of the bigger economic picture.

Its objective is to reform the framework for financial services regulation “to learn from the financial crisis”.

If passed, it would give the Bank of England control of “macro-prudential regulation” and it would also oversee “micro-prudential regulation”.

The main benefit would be to ensure that risks and imbalances in the economy are properly monitored and managed, to maintain financial stability.

The announcement of the Bill follows the Conservative paper last year on ‘Plan for Sound Banking’.

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