Andy Haldane - Executive Director, Financial Stability, Bank of England
Reforms need to be made to the way in which banks operating in the UK are monitored in terms of their accounting practices.
That is according to senior Bank of England official Andy Haldane, who told the Better Markets conference hosted by the Institute of Chartered Accountants in England and Wales that updates are needed in this area of the law.
Mr Haldane explained that the present method may potentially have allowed banks to doctor their true accounting figures and therefore urged there to be a "radical" overhaul in this regard in the near future.
"Accounting rules for banks have bent with the financial stability wind in ways which have amplified investor and regulatory uncertainty," he stated.
With this in mind, the official indicated that changes need to be made if consumer confidence in the banking sector is to be restored.
Recently, David Cameron called for the financial system to foster a time of "responsible capitalism" in the aftermath of the recession.
