Darling to reform "kamikaze" banking

Sunday, 5 July 2009 12:00 AM

Chancellor Alistair Darling has pledged radical reform to the banking system in order to prevent another financial crisis.

In an article in the News of the World, Mr Darling said that banks had behaved recklessly in an environment where no one was aware of the risk of their actions.

Speaking about reform of the financial system, the chancellor said that banks could no longer act in a "kamikaze manner" adding that "tougher regulation and more rigorous monitoring and managing of system-wide risks" was to be announced in his proposals this week.

Writing in the paper, he said: "Regulators will get powers to do their jobs more effectively, to ask searching questions of the institutions.

"Businesses need to be able to borrow. Families need to get mortgages. The stakes are high but a stable financial world is a goal we are determined to achieve."

Mr Darling also stated that the new banking system would be one that people could rely on and that would be the foundation of the country's "new prosperity".

Tags:
• banking crisis
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• economy
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• economy and finance